Leon Cooperman, founder of Omega Advisors, discussed what he termed “attractive values” at the Value Investing Congress on Tuesday. This included his outlook on recession, the economy in general, the Eurozone and the world’s debt issues. Here are some of the highlights from his presentation.
Leon Cooperman’s Attractive Values
Cooperman thinks that the world is highly unlikely to experience any sort of economic decline like was seen in 2008. To his reasoning, the banking system is reporting strong capital ratios, Corporate America is in excellent shape, investors and households are more conservative with money and inventories are in good shape (in other words, no bubbles). Cooperman also said that the lower dollar should help boost exports, as will the oil price decline. He likes the recent surge of M&A activity as well.
Leon Cooperman’s View on the Equity Market Outlook
Leon Cooperman also discussed the risks he sees to the economy and the equity outlook in general. Cooperman said that the government is not friendly to corporate America and that is a problem. He also noted that the more controls that the government puts in place, the more the equity markets will be constrained because protecting against bubbles works both ways. Cooperman also said that weak employment growth could be an issue.