Hedge fund billionaire Leon Cooperman said he thinks the market is overvalued, and that it is overlooking “a number of things.”
Chiefly, he said, the market “is not recognizing the risks that we face: the China relationship deteriorating, the tremendous increase in debt in the system, certainly from the election, the virus issues,” Cooperman told CNN’s Christine Romans in an interview that aired on “Early Start” Monday.
The nation’s rapidly growing national debt is among Cooperman’s biggest concerns.
“I am focused on something the market is not focusing on at the present time and that is: Who pays for the party when the party is over?” Cooperman said. The deficit is growing at a rate “well in excess of the growth rate of the economy,” he added. “To me, that means more of our nation’s income will have to be devoted to debt service, which will retard economic growth in the long term.”
“If Democrats control Congress and the White House, I think that there’s going to be a big increase in taxation which will not be a positive for the market,” he said.
Still, Cooperman said Trump is “worse than I feared in many respects.”
“Better in some respects, but worse than I feared overall,” he said.
He added: “In my opinion, if President Trump is not prepared to change his dialogue and the way he treats people, he should not run again and take a victory lap… In January, before the virus hit, the economy was at a record high. Unemployment amongst minorities was at a record low. Overall, unemployment was at a record low. He opened up a necessary dialogue on trade. Opened up a necessary dialogue on immigration. So he did some good things. But his behavior is very offensive.”
“Six months ago, the market was totally fixated on a…