- Leon Cooperman doesn’t expect a market crash, or recession, for at least another year.
- The billionaire investor has sounded the inflation alarm and warned against betting on Bitcoin.
- Cooperman has called on Robinhood users to ramp up the meme stock to high ratings.
- See more stories on the Insider Business page.
Billionaire investor Leon Cooperman has ruled out an imminent market crash, criticized the Federal Reserve for overstimulating the economy, and warned against holding bitcoin in an interview with CNBC this week.
Copperman, who converted his hedge fund from Omega Advisors into a family office in 2018, has also sounded the alarm about inflation, questioned the hype around Mimi’s stock, and bemoaned the meager returns from bonds and savings accounts.
Here are Cooperman’s 14 best quotes from the interview, edited and condensed slightly for clarity:
1. “There have been big drops due to the recession. We’re coming out of a recession, and we’re not going into a recession anytime soon. That’s at least a year later, maybe more.” – Copperman listed rising inflation, a falling dollar, and the Federal Reserve cutting or eliminating its economic support as potential catalysts for the next downturn.
2. “The Fed is wrong about inflation. This idea that inflation is temporary is a far-fetched dream. 65% of business costs are labor. Do you know anyone who works for less money in this environment?”
3. “The Federal Reserve has been a maid of this administration. We are running huge fiscal deficits and the Federal Reserve is funding it.”
4. “The market structure is broken. There are no stabilizing forces in the market now, everything is run by machines. When there is a real reason the market is down, it will drop so fast that your head will spin.”
5. “If you don’t understand bitcoin, you are old. I am 78 years old, and I am old, and I don’t understand it. One thing I know is that it is not in the interest of the US government to compensate the US dollar.”
6. “I would be very careful with bitcoin. I don’t think that makes much sense. If you were worried about the world, gold would be a better store of value than bitcoin.”
7. “Most companies are not overvalued against interest rates today. Some things are overrated, crazy — I call that Robinhood market. I hope they know what they’re doing, but I doubt it.”
8. “Negative interest rates are ridiculous. There is a bunch of academics running monetary policy all over the world. Bonds are totally wrong. The idea of buying a German 10-year bond and getting a lower yield in 10 years than you invest today — I really don’t get it at all.” .
9. “There should be a return on the investment in fixed income. The government should sell a lot of bonds. What will buy bonds today?”
10. “I’m listening to the Fed talk, and I’m looking at inflation, market action, gold, bitcoin, the dollar exchange rate, and interest rates in general. I’m watching a lot of things for a signal change.” – Determine what to watch to determine when to exit the market.
11. “I’m a perpetual optimist. I kind of agree with Warren Buffett. People don’t get rich being America short.”
12. “I don’t like attacking the rich. I give all my money away so I don’t care too much, but I am a capitalist with a heart. This constant attack on the rich is very upsetting to me.”
13. “You can take all the money from the rich and still not cover the country’s financial problems.”
14. “If you go to your financial planner and ask them what you will earn from your savings, the answer is ‘bupkus.’ You can’t make any money from your savings, and you can’t afford to retire. This reduces the chance of young people entering the workforce. The world has turned upside down. This has to change.”