Advertisement
Features

Leon Cooperman: no fan of tariffs

Billionaire hedge fund manager and ex-Goldman Sachs partner Leon Cooperman is “not a fan” of President Donald Trump’s tariffs on America’s allies, and hopes he will back down

900_MW_P16_Guru
Leon Cooperman, chairman and CEO of Omega Advisors

2015 Ben Gabbe

Billionaire hedge fund manager and ex-Goldman Sachs partner Leon Cooperman is "not a fan" of President Donald Trump's tariffs on America's allies, and hopes he will back down, he told CNBC last week. "If he listens to his advisers, hopefully, enough sane people in Washington will tell him let's back off on this trade stuff'."

Advertisement - Article continues below

Trump recently decided to impose tariffs of 25% on steel imports and 10% on aluminium imports from Canada, Mexico and the European Union, who were quick to announce retaliatory measures. This is not necessary, reckons Cooperman. Trump "can accomplish what he wants to accomplish... in a different manner We need someone who unifies people."

Cooperman also fears that 2019 could be rocky for equities as the US central bank, the Federal Reserve, tightens monetary conditions under new boss Jerome Powell and inflation rises, helped by a healthy labour market and tax cuts. "In the next 12 to 24 months... I think that inflation and interest rates will catch up to the market as we normalise."

He isn't ready to rush to sell up yet. "The conditions normally associated with a big decline are not yet present." But the market is expensive by historic standards so if stocks do carry on rising, says Cooperman, investors should take some profits. And watch out for rising US Treasury bond yields "if we get the ten-year [yield] over 3.5% that could be very competitive to the stockmarket", as investors would be drawn to the extra income on offer.

Advertisement
Advertisement

Recommended

Visit/519858/how-long-can-the-good-times-roll
Economy

How long can the good times roll?

Despite all the doom and gloom that has dominated our headlines for most of 2019, Britain and most of the rest of the developing world is currently en…
19 Dec 2019
Visit/517688/the-british-equity-market-is-shrinking
Stockmarkets

The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
Visit/511212/reasons-for-investors-to-be-bearish-but-stick-with-the-stockmarket-bulls
Stockmarkets

There are lots of reasons to be bearish – but you should stick with the bulls

There are plenty of reasons to be gloomy about the stockmarkets. But the trend remains up, says Dominic Frisby. And you don’t want to bet against the …
17 Jul 2019
Visit/510684/good-news-on-jobs-scares-stockmarkets
Economy

Good news on jobs scares US stockmarkets

June brought the best monthly US jobs growth of the year, but stockmarkets were not best pleased.
11 Jul 2019

Most Popular

Visit/economy/uk-economy/601427/covid-bounce-back-loans-and-inflation
UK Economy

What bounce back loans can tell us about how we’ll pay for all this

The government will guarantee emergency "bounce back loans" for small businesses hit by Covid-19. Inevitably, many businesses will default. And there'…
1 Jun 2020
Visit/economy/global-economy/601420/james-ferguson-the-virus-the-lockdown-and-what-comes-next
Global Economy

The MoneyWeek Podcast: James Ferguson on the virus, the lockdown, and what comes next

Merryn talks to MoneyWeek regular James Ferguson of Macrostrategy Partnership about what's happened so far with the virus; whether the lockdown was th…
28 May 2020
Visit/investments/stockmarkets/601423/as-full-lockdown-ends-what-are-the-risks-for-investors
Stockmarkets

As full lockdown ends, what are the risks for investors?

In the UK and elsewhere, people are gradually being let off the leash as the lockdown begins to end. John Stepek looks at what risks remain for invest…
29 May 2020