Leon Cooperman made a bearish stock prediction, saying rich people should pay more taxes, and addressed his Elizabeth Warren feud in a recent interview. Here are the 10 best quotes.
Leon Cooperman condemned the public and politicians for “attacking the rich”.
CNBC / Getty
- Leon Cooperman said the stock market will be lower in a year and the Fed will be “surprised” by inflation.
- He also said high net worth individuals should pay more taxes, but he contradicts Sen. Warren’s wealth tax plan.
- Describing his “humble” tastes, the billionaire said he recently swapped a 2002 Lexus for a Hyundai.
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In a 22-minute interview with CNBC on Friday, Leon Cooperman said the stock market would be lower in a year, defended capitalism and discussed his ongoing back-and-forth with Senator Elizabeth Warren over wealth tax. The investor, whose estimated net worth is $ 2.5 billion, according to Forbes, also discussed his “humble” lifestyle choices.
Here are his 10 best quotes:
(1) Regarding its bearish long-term market outlook:
“Let’s face it. The market is facing the fact that taxes are rising, interest rates are rising and inflation is rising. And we have a reasonably richly valued market. That’s how cyclical I am. But I keep an eye on the outcome,” said Cooperman, who also told CNBC that the stock market will be lower in a year from today.
(2) On inflation that may surprise the Federal Reserve:
“I think Mr. Powell will be surprised by inflation. It won’t be as calm and fleeting as he thinks. I think the Fed will be forced to say something before the end of 2022.”
(3) On the “self-correcting” character of the current market:
“The market has been very self-correcting in the sense that FAANG stocks are not expensive, but emerging FAANG stocks are very expensive and have been seriously corrected. The overall slowdown in the SPAC space is self-correcting corrective.”
(4) “Overvalued” in the bond market.
“I don’t see why someone would want to buy a bond when you are giving away 40% to 50% of the coupon to the government and then you have inflation and your capital is confiscated. I’d rather take my chance on a common stock.”
(5) About the rapid pace of economic growth:
“If you were to speak to a hundred economists today and ask them what they think about the potential real growth of the US economy, the answer would center around 2%,” Cooperman said. “We’re growing four to five times the potential this year, but the Fed continues to keep rates close to zero. That doesn’t make a lot of sense to me. It just pushes people onto the risk curve.”
(6) On his back and forth with Sen. Elizabeth Warren:
Cooperman said he thought Warren’s property tax was “likely” unconstitutional. “I don’t know her. I disagree in Massachusetts, but I think she’s very wrong,” he said.
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(7) Regarding wealth tax:
“I believe in the progressive income tax structure, I believe rich people should pay more. The wealth tax makes no sense to me for many reasons. In all the countries where it was introduced, I think 14 out of 17 have been eliminated. And there are so many better ways of what to do [Warren is] looking to achieve. “
(8) For the success of wealthy private individuals:
“How do you get very rich? You create a product or service that the world wants. Is the world doing better or worse because of Jeff Bezos, Bill Gates, Bernie Marcus, and Ken Langone? I think the world is doing better.” ” “”
(9) In defense of capitalism and mega-cap companies like Microsoft, Google, Amazon and Facebook:
“I’m a capitalist with a heart. I don’t use a lot of money. I respect money. I’ve lived very humbly, but I think what made America great is our commitment to capitalism. And the fact that we are. ” Turning your back on capitalism in many ways is wrong … God knows what we would go through if we didn’t have these companies in recent years to help us with this pandemic. “Said Cooperman.
(10) His view that material possessions bring “trouble”.
“I just bought a new car the other day and the car I was trading in was a 2002 Lexus. I kept the car for 20 years! And I bought a Hyundai. I’m not a collector.”