BFW 06/07 18:39 MORE: Omega’s Cooperman Likes Citigroup, Chimera Investment
Omega’s Cooperman Says There Is No Bubble in U.S. Stock Market
2015-06-07 18:29:09.178 GMT
By Michelle Kaske
(Bloomberg) -- The U.S. stock market isn’t overpriced and
may gain as much as eight percent annually over the next three
to five years even if there’s an economic setback, Omega
Advisors Inc.’s billionaire founder Leon Cooperman said Sunday.
“I think the market’s OK,” Cooperman, chairman and chief
executive officer of the New York-based hedge fund, which
manages $9.5 billion in assets, said on the television program
“Wall Street Week.” “It’s not cheap, but it’s not priced to
perfection. The bubble is not in the stock market. If there’s a
bubble, it’s in the bond market.”
The Standard & Poor’s 500 Index, which soared to a record
last month, has gained 1.65 percent this year.
The best U.S. jobs report in five months on Friday eased
concerns that the U.S. economy is struggling to regain momentum
after a contraction in the first quarter. At 5.5 percent, May’s
jobless rate is almost half the 10 percent rate in October 2009,
four months after the longest recession since the Great
Depression ended.
Cooperman, a former partner at Goldman Sachs Group Inc.,
sees potential value in Citigroup Inc. as commercial lending
picks up. He also favors Chimera Investment Corp., a New York-
based investor in residential mortgage loans, saying he wouldn’t
be surprised if the company raised its dividend next year.
Heading into the 2016 election cycle, Cooperman said he
wants Republican presidential candidates to focus on the U.S.
economy rather than on divisive social issues such as abortion
and homosexuality.
“I’m going to have trouble with any Republican that does
not disavow a fixation of social issues,” he said. “The young
people today in our country are not grabbed by those issues. So
we have to have somebody that’s fiscally conservative, oriented
towards fixing the problems in the economy.”
Income disparity and radical Islamic fundamentalism are two
of the major challenges facing the U.S. over the next decade,
Cooperman said.
“Wall Street Week” is produced by SkyBridge Media, an
affiliate of SkyBridge Capital, the fund-of-funds business
founded by Anthony Scaramucci. SkyBridge, which sometimes has
other business relationships with the shows participants,
advertisers and sponsors, pays Fox stations in key markets to
broadcast the show and also streams it online every Sunday at 11
a.m. in New York.
For Related News and Information:
Omega’s Cooperman Tells Hillary Clinton to Cut the ’Crap’
Cooperman’s Omega Hedge Fund Hires Former Baseball Player Wolff
Top Stories:TOP<GO>
To contact the reporter on this story:
Michelle Kaske in New York at +1-212-617-2626 or
mkaske@bloomberg.net
To contact the editors responsible for this story:
Peter Eichenbaum at +1-212-617-5722 or
peichenbaum@bloomberg.net
Lester Pimentel, Ros Krasny
2015-06-07 18:29:09.178 GMT
By Michelle Kaske
(Bloomberg) -- The U.S. stock market isn’t overpriced and
may gain as much as eight percent annually over the next three
to five years even if there’s an economic setback, Omega
Advisors Inc.’s billionaire founder Leon Cooperman said Sunday.
“I think the market’s OK,” Cooperman, chairman and chief
executive officer of the New York-based hedge fund, which
manages $9.5 billion in assets, said on the television program
“Wall Street Week.” “It’s not cheap, but it’s not priced to
perfection. The bubble is not in the stock market. If there’s a
bubble, it’s in the bond market.”
The Standard & Poor’s 500 Index, which soared to a record
last month, has gained 1.65 percent this year.
The best U.S. jobs report in five months on Friday eased
concerns that the U.S. economy is struggling to regain momentum
after a contraction in the first quarter. At 5.5 percent, May’s
jobless rate is almost half the 10 percent rate in October 2009,
four months after the longest recession since the Great
Depression ended.
Cooperman, a former partner at Goldman Sachs Group Inc.,
sees potential value in Citigroup Inc. as commercial lending
picks up. He also favors Chimera Investment Corp., a New York-
based investor in residential mortgage loans, saying he wouldn’t
be surprised if the company raised its dividend next year.
Heading into the 2016 election cycle, Cooperman said he
wants Republican presidential candidates to focus on the U.S.
economy rather than on divisive social issues such as abortion
and homosexuality.
“I’m going to have trouble with any Republican that does
not disavow a fixation of social issues,” he said. “The young
people today in our country are not grabbed by those issues. So
we have to have somebody that’s fiscally conservative, oriented
towards fixing the problems in the economy.”
Income disparity and radical Islamic fundamentalism are two
of the major challenges facing the U.S. over the next decade,
Cooperman said.
“Wall Street Week” is produced by SkyBridge Media, an
affiliate of SkyBridge Capital, the fund-of-funds business
founded by Anthony Scaramucci. SkyBridge, which sometimes has
other business relationships with the shows participants,
advertisers and sponsors, pays Fox stations in key markets to
broadcast the show and also streams it online every Sunday at 11
a.m. in New York.
For Related News and Information:
Omega’s Cooperman Tells Hillary Clinton to Cut the ’Crap’
Cooperman’s Omega Hedge Fund Hires Former Baseball Player Wolff
Top Stories:TOP<GO>
To contact the reporter on this story:
Michelle Kaske in New York at +1-212-617-2626 or
mkaske@bloomberg.net
To contact the editors responsible for this story:
Peter Eichenbaum at +1-212-617-5722 or
peichenbaum@bloomberg.net
Lester Pimentel, Ros Krasny