Billionaire investor and hedge fund manager Leon Cooperman says the US stock market faces a tough future amid steep valuations.
In a new CNBC interview, Cooperman says the US stock market’s current valuation is higher than it has ever been in 98 of its history.
-->“I think the broader market is heading for trouble. It is extremely overvalued relative to its own history. It’s about 98th percentile valuation and lots of issues that have to be dealt with.”
According to Cooperman, the US is facing various economic and political challenges that the leaders are unable or unwilling to resolve.
“We have no leadership in Washington, no agreement among the two parties. We have radical left, radical right, which I think are hurting the country. And we have to get along, we have to work together to deal with our problems. And it’s not being done. And every day the debt goes up and goes up. Nobody’s focusing on it.”
On the risks facing the stock market, Cooperman says a potential artificial intelligence (AI) bubble could be one of the catalysts that could trigger a correction.
“Either AI being discredited or maybe showing not to be that economic. Or recession. It doesn’t look like a recession in the near term. The economy is slowing.
I think that with every third word on TV being AI… You have to be a little concerned about AI being overpromoted.”
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