Scott Mlyn | CNBC
Billionaire investor Leon Cooperman told CNBC on Wednesday that he’s not purchasing any new stocks right now because the bull market is so advanced.
“We have not really added anything new to a lot of things we have,” the Omega Advisors chairman and CEO said on “Fast Money Halftime Report.” “We’re having a decent year. We’re up double digits, and it’s only on about 65% exposure” to risk assets with the rest in cash.
“I’m reluctant to open new positions because I think we’re in an advanced part of the cycle,” added Cooperman, whose firm is now closed to outside investors.
U.S. stocks have rallied this year despite concerns about the Federal Reserve and a global growth slowdown. Since the market plunged on Dec. 24, the S&P 500 has rallied more than 28% as of Tuesday’s close. The bulk of those gains came in 2019.
Coooperman doesn’t expect the bull market to end anytime soon. He sees 10% to 15% more upside. “Bull markets don’t end in valuation, they end in overvaluation. They end in euphoria,” Cooperman said, adding he does not see that euphoria yet.
He appeared on CNBC ahead of the Fed’s afternoon release of its post-July meeting policy statement and news conference from Fed Chairman Jerome Powell.
Central bankers are expected to cut interest rates for the first time in more than a decade. Cooperman said the Fed should not cut rates but it will.
He also said he does not see an extended rate-cut cycle. “I think we’re one and then data dependent,” he added. “If we’re right on the economy, I think we’re one and done.”