MW Leon Cooperman on what would turn him more optimistic: 'I am looking for news to get worse.'

By Steve Goldstein

Leon Cooperman, the 82-year-old billionaire chairman and chief executive of Omega Advisors, doesn't have a particularly optimistic view of stocks.

"I look around the world, and I see a market, at a high, at 24 times earnings, currently around 22 times earnings. And I look at all the issues out there, and the multiple seems far too high," he told Bloomberg Television in an interview on Wednesday night.

"And it's high against current interest rates," he said. "I think interest rates on the 10-year, and longer, are going to go up, not down."

The 10-year Treasury yield BX:TMUBMUSD10Y shot up 11.5 basis points on Wednesday, finishing at 4.60%, after a poorly received auction of the 20-year note. The S&P 500 SPX slumped 1.6%, putting the index 5% below its record high from mid-February.

"The debt outstanding is ridiculously high. And nobody's focused on it," Cooperman said. "Even this new budget proposal, it's a tax-and-spending kind of thing, it's not dealing with the deficit."

What would make him more positive? Bad news - and specifically, stocks responding well to bad news.

"Market tops are made on good news, and market bottoms are made on bad news," he said, a comment often made by technical strategist Tom DeMark, who has advised Cooperman. "I'm looking for the news to get worse."

His latest 13-F filing with the Securities and Exchange Commission showed his top position was Mr. Cooper $(COOP)$, which at the end of the quarter agreed to be purchased by Rocket Companies $(RKT.UK)$ for what was $9.4 billion in stock. Cooperman supported the deal, calling the acquisition "terrific."

According to FactSet, Cooperman acquired his stake in the mortgage servicer at a cost of $13.38 a share, which closed Wednesday at $125.50.

He said newer positions that his firm has acquired include Atlas Energy Solutions $(AESI)$, GE HealthCare $(GEHC)$ and Fidelis Insurance $(FIHL)$.

-Steve Goldstein

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May 22, 2025 02:45 ET (06:45 GMT)

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