Cooperman: U.S. Equity Bull Maket, Economic Expansion Long Lasting

Leon Cooperman, the Chairman and CEO of Omega Advisors remained bullish about the U.S. equity market and optimistic about the country’s economic growth, says Cooperman in a letter to investors reviewed by ValueWalk.

Cooperman and his team believe that the U.S. equity bull market and country’s economic expansion would be “long-lasting and self-sustaining.” According to them, the U.S. economic growth “should be broad-based, low in volatility, and in a sweet spot."

U.S. equity markets should deliver 6% to 8% return over the coming years

Cooperman and his team believe that the U.S. equity bull market should deliver a mid to high, a single-digit total return of around 6% to 8% over the coming years. According to them, the total returns consist of a 4% to 6% earnings growth and a 2% dividend yield.

“We are on the view that the current U.S. equity bull market will last quite a while, longer than the next twelve months. The principal reasons for this notion of extended equity bull market are our expectations of a synchronized long-lasting global economic expansion, and a synchronized kong-lasting period of global central bank accommodation.”

The hedge fund manager and his team said the U.S. share valuation is okay, and there is no alternative to equities from fixed-income markets. They noted that the U.S. equity market has a “very good valuation relative to bond interest rates and inflation.”

Cooperman believes central banks will remain investor-friendly