Tags: leon cooperman | donald trump | stock market | world

Leon Cooperman: 'The World Is All Crazy' From Negative Interest Rates

Leon Cooperman: 'The World Is All Crazy' From Negative Interest Rates

By    |   Wednesday, 12 October 2016 09:55 AM

 

Billionaire hedge fund king Leon Cooperman says the world has been "turned upside down" during one of the most volatile times in modern history amid a seemingly endless series of jolts to the financial system.

From negative interest rates in Japan and Europe, the Brexit vote in the U.K., to the unprecedented U.S. presidential election – the surprises continue unabated.

"The world is all crazy," the Omega Advisors chairman and CEO told CNBC. However, the stock market is "fully valued," he contended. "The market is fully valued, not exploited, not overvalued, but fully valued."

 

And he said bargains abound for savvy investors. "I think there are many companies that are very cheap relative to the index ... because the money flowing into the market is largely going into these indexed products."

Turning to the contentious White House race, Cooperman said he won't vote for Donald Trump because the GOP nominee is not presidential.

"When he said John McCain wasn't a hero, and kept on repeating it, because he got captured, I wrote him off."

"The people that are in favor of Donald Trump are basically saying, 'I know what I get when I get Hillary Clinton. I don't want that. I'm not sure what I'm going to get with Donald Trump. I'll take my chances,'" he said.

Cooperman said he doesn't want to vote for Clinton and he may write someone in.

"Four years ago, President Obama successfully made [Mitt] Romney's wealth a liability," Cooperman said. "Now we have a candidate [Trump] who gets up there and says, 'I'm richer than you think.' And the public is eating it up,'" he said.

"I'm confused," he said.


However, one of the most respected financial gurus of our time thinks the recent investor “bearishness” is actually good for stocks in the long run and the market may still hit 20,000 before year’s end.

“If you want to know the truth, I actually think the bearishness that we see on the part of not only ordinary investors but professionals is a positive for the market,” Wharton School of Business finance professor Jeremy Siegel told CNBC.

“In 1999 and 2000 people were unbelievably bullish. We reached 30 times earnings at the peak of that bull market. That's another 50% higher than we are today," he said.

But not all experts are as optimistic as Siegel, a longtime noted market bull.

For example, Seattle-based Russell Investments says American equities are priced too high with too few prospects for earnings growth to rally much more. Other reasons for caution listed in a recent report include weaker job creation and fading price momentum. The firm reiterated an underweight recommendation for U.S. stocks.

“We see the new mediocre, which is a combination of lackluster global GDP growth, weak corporate earnings and expensive U.S. equity market valuations,” Paul Eitelman, investment strategist for North America, told Bloomberg. “The net result of that is that we think medium-term expectations are likely to be subdued.”
   
(Newsmax wire services contributed to this report).



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Billionaire hedge fund king Leon Cooperman says the world has been turned upside down during one of the most volatile times in modern history amid a seemingly endless series of jolts to the financial system.
leon cooperman, donald trump, stock market, world
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2016-55-12
Wednesday, 12 October 2016 09:55 AM
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