Leon Cooperman says stock market could be stuck for years — ‘too much debt is being created’
Billionaire investor Leon Cooperman told CNBC on Friday that he was concerned about the long-term outlook for the stock market because “too much debt is being created.”
“I think the overwhelming reality is the Fed is just creating this environment of free money. You have to kind of make a judgement whether that’s justified, how long it’s going to last and what impact this has on the longer-term outlook,” Cooperman said on “Squawk Box.”
“Longer term, I probably have a dissenting view than Wall Street because I’m of the concern as to who pays for the party when the party is over?’ added Cooperman, chairman of the Omega Family Office.
In August, Cooperman also expressed worries about the long-term market outlook, following Wall Street’s robust rally from pandemic-driven lows in late March. “We’ve been pulling a lot of demand forward. I would expect that future returns will be relatively unimpressive for a long time,” he told CNBC then.
The outspoken Cooperman said on CNBC on Election Day that he cast his ballot for Democrat Joe Biden in the presidential race, saying he “voted my values and not my pocketbook.” Back in August, he said he was undecided, citing uncertainty over Biden’s policies and concern for President Donald Trump‘s divisive demeanor.