Tags: leon cooperman | stocks | market | fairly | valued

Leon Cooperman: Sell Stocks Now Because Market Is Fairly Valued

By    |   Wednesday, 06 June 2018 01:26 PM

Billionaire investor Cooperman told savvy investors that he would sell stocks now since the strong market is fairly valued.

"I would be a reducer on strength, not a buyer on strength. I think the market is adequately valued," Cooperman told CNBC.

However, the chairman and CEO of Omega Advisors warns that trouble looms for market investors.

"I'm sympathetic to the idea that sometime in the next 12 to 24 months there will be events that will catch the market. In order words, I believe that ... I think that inflation and interest rates will catch up to the market as we normalize," Cooperman told CNBC.

Cooperman argued that with the Federal Reserve tightening monetary conditions and inflation looking stronger, He said 2019 could wind up being a turbulent year for equities.

Meanwhile, some economic storm clouds could possibly loom on America's financial horizon.

The World Bank predicts that U.S. growth will register 2.7 percent in 2018, aided by tax cuts, before slowing to 2.5 percent next year and 2 percent in 2020.

The anti-poverty agency predicted this week that global growth will decelerate from a solid 3.1 percent this year to 3 percent next year and 2.9 percent in 2020, the Associated Press reported.

The world economy is generally healthy but must contend with rising interest rates in wealthier countries and weaker demand for commodities in developing nations. It also faces risks from trade disputes, financial volatility and geopolitical tensions.

To be sure, stocks continues to rise Wednesday on Wall Street. Shares edged higher as banks stocks lifted the S&P 500 and the Dow, while gains for Amazon and Tesla helped the Nasdaq notch another day of record gains.

Technology stocks have been on a tear in the recent days, resilient to issues that have roiled the financial markets including trade talks between the United States and its partners, geopolitical worries and rising interest rates, Reuters said.

“There’s a strong fundamental background and evidence that effects of tax reforms are still largely ahead, and in the real economy they are starting to flow through,” Thomas Martin, senior portfolio manager at Globalt Investments in Atlanta, Georgia said.

(Newsmax wire services contributed to this report).

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Billionaire investor Cooperman told savvy investors that he would sell stocks now since the strong market is fairly valued.
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Wednesday, 06 June 2018 01:26 PM
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