Financial expert Leon Cooperman remains optimistic about the U.S economy as inflation continues to decline with oil prices making lows in the recent weeks. During an interview on CNBC, Leon Cooperman of Omega Advisors reiterated that there is a lot to be optimistic about especially in the stock market.
Cooperman remains optimistic that 2014 will close at a high with the only concern coming from the economic downturn or a geopolitical eruption that might hurt the prediction. Cooperman took a jab at SEC’s move to reduce trading costs that have only gone to affect profits for brokers as most of them are shying away from taking large inventories.
“We don’t see accelerated inflation, right now it is a concern about deflation and a deflation we are worried about in my opinion is high-quality deflation. The taxpayers around the world have got their trillion dollar tax cut as a result of this decline of the price of oil, that’s a positive, “said Mr. Cooperman.
Interest rates are currently trading at a low allowing a number of people to re-finance their mortgages, another highlight by Cooperman that the economy is slowly recovering. Cooperman also noted that the stock market has been on the rise for the past 29 months after the last Fed rate hike.
The only concern at the moment according to Cooperman is the fact that interest rates are trading at where they are not supposed to be, and might rise in the coming months.
“The greater fear I would have is we are sitting here a year from now talking about the market if interest rates are where they are today a year from today. The stock market is going to be lower because the economic outlook have proved to have been very disappointing, “said Mr. Cooperman.
Cooperman expects the current bull market run to continue and should appreciate in line with profits while stocks continue to benefit from the reprising of the high yield.
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