How far can good vibes push the market? That’s a question investors should think about, especially if events pan out as investing legend Leon Cooperman believes they will.
The billionaire hedge fund manager does not see the current rally in stocks as anything sustainable, and cautions that it is built more on positive sentiment than on anything solid. Moreover, he holds a pessimistic outlook regarding the S&P 500‘s ability to not only reach but also surpass its peak level of 4,800 achieved back in January 2022 for several years.
Diving into specifics, Cooperman observes that the rise in stocks this year is not attributed to improved fundamentals, but rather to improved sentiment. Investors are feeling optimistic about stocks at the moment, leading them to buy in, even though corporate profits aren’t keeping up. Cooperman cautions that this kind of optimism cannot last, and when it eventually falters, it will coincide with the Fed’s rising interest rates. This combination may…
2023-08-30 18:48:43
Link from finance.yahoo.com