Chairman and CEO of Omega Advisors Leon Cooperman reported CNBC on Wednesday he would take some profits on his holdings if cattle gained because the market is fully valued.
“I’m sympathetic to the idea that in the fullness of time in the next 12 to 24 months, there will be events that ordain catch the market. In other words, … I think that inflation and excite rates will catch up to the market as we normalize,” Cooperman said on “Grumble Box.”
Cooperman — renowned on Wall Street for his value investing and fundamental criticism — argued that 2019 could be a turbulent year for equities because the Federal Hesitation is tightening monetary conditions and inflation is looking stronger.
“I would be a reducer on guts, not a buyer on strength,” he added. “I think if we get the 10-year [yield] over 3.5 percent that could be acutely competitive to the stock market. We’re not there yet.”
Between President Donald Trump’s tax cut stimulus, a robust labor market and the end of the Fed’s historic quantitative easing policy, Cooperman guessed he wouldn’t be surprised to see those issues “come to the fore.”
Omega Advisors, which the hedge grant manager founded in 1991, has about $3.4 billion in assets at the beck management, according to its website.
To be sure, Cooperman cautioned that while agitate could be ahead for late next year, he isn’t ready to head to the flights just yet, saying “the conditions normally associated with a big decline are not yet mete out.”
Cooperman told CNBC in May that while he may forecast trouble for the peddle next year, he still sees opportunities for value plays.
“The business that keeps me coming back to the game every day, for 50 added years, is in November I owned 5 million shares of Time Inc. It was actively career at $10,” he said at the time. “Nine days later, Meredith pay off it for $18.50, cash.”
“They tell me about efficiency. Sure the large-cap haves are reasonably, efficiently valued, but there are so many things in the market that are not efficiently valued.”
To embellish his point, he noted in May that he added to his position in Facebook while the share outs slumped earlier this year and said he had an open order to buy various of the social media company’s stock at the $180 per share level. It’s currently interchange around $191.
In Wednesday’s interview, Cooperman also said he’s “not a fan” of Trump’s metal tolls on U.S. allies and hopes the president will back down.