Leon Cooperman stakes his chips on a selected number of stocks.
In his latest interview, he referred to expansionary economic policy in both fiscal spending and monetary easing as irresponsible.
“We have pulled demand forward, and we have got to get our house back in order. We have had an explosion of debt in the system, and that debt has to be serviced,” said Leon Cooperman.
“We have pulled demand forward, and we have got to get our house back in order. We have had an explosion of debt in the system, and that debt has to be serviced”
LEON COOPERMAN
In a backdrop of high inflation Leon Cooperman stakes his chips on a selected number of stocks
“We are probably facing an environment of continued high inflation and rising interest rates unless we get to fiat currency rising taxes and the market is not cheap,” he said.
“It is a very strange market. The indices themselves have no fascination for me. I find a lot of individual stocks that are attractively priced,” he added.
Leon Cooperman stakes his chips on a selected number of stocks, so what are his criteria for stock selection given his conservative view of the market?
“I am looking for companies that have been through a few recessions and didn’t get blown apart. I want to be paid to wait. So I am looking for dividend income while I am holding the security. I am looking at companies with the capacity and willingness to buy back cheap stocks. I don’t want management telling me it’s cheap. I want them to prove it by buying back their stocks,” he said.
“I am looking for companies that have been through a few recessions and didn’t get blown apart”
LEON COOPERMAN
“I want quality management. Generally, I am avoiding bonds,” he added.
But Leon Cooperman admits that he is not expecting much from the markets.
Leon Cooperman noted that nobody, himself and Fed chair Powell knows how high rates will go to get inflation under control.
So, 22 percent of Leon Cooperman’s portfolio is in energy and energy stocks, which he finds as a group very attractive, at three times cash flow.
“Ever since the great financial crisis, the market has been screwed up”
– LEON COOPERMAN
Leon Cooperman noted that the 2-year treasury note is a place to park cash. But he also said that he knows a better place to park cash.
Ever since the great financial crisis, the market has been screwed up. Before 2008 the 10-year treasury was aligned with nominal GDP. We have had financial suppression. I don’t know how high yields will go, but I can find companies in the stock market that make more sense than buying bonds.
So Leon Cooperman stakes his chips on a selected number of stocks; they are
Cigna Corp (CI), Energy Transfer (ET), Lithia Motors (LAD).
