The budget wrangling between Democrats and Republicans is a negative for the markets that should not be overlooked, stressed Cooperman, who described himself as socially liberal and fiscally conservative. "It's not an original comment by me, but I read somewhere, 'They closed the circus, but are still paying the clowns.' It's just disgraceful what's going on down there."
"The real issue in Washington is the long-term issue of whether we're receiving or achieving," he added.
"Our leaders have to agree on the appropriate maximum marginal tax rate on wealthy people, he said, "because once you agree on that number, that defines the revenue yield to the government. And then we have to size government to that revenue yield."
"[Warren] Buffett, which we all have enormous respect for, he would say and has said if you make over $1 million a year [it's] 35 percent. Maybe if you make over $5 million something close to 40 percent," Cooperman said. "I'd sign right now on the dotted line for 40 percent."
Against this backdrop and projections for corporate earnings, Cooperman said, the stock market is fairly valued with the S&P 500 in the 1,650 to 1,750 range, adding that he doesn't see a bear market coming anytime soon. "Most bear markets are associated with recessions," he said, "and we don't see a recession.
(Read more: Cooperman looks to go 10 for 10 again in 2013)
"China is getting a bit better, Europe is turning, and the U.S. is kind of grinding out 2 percent" economic growth, he said.
"What would make me negative [on stocks is] a 10 to 15 percent quick rise in the market, getting into that third phase of exuberance, which we're not at now—a view of a recession emerging, which we're not at now," Cooperman said. "There's much evidence that the economy is picking up a little momentum, not losing it."
Meanwhile, the Federal Reserve's near-zero interest rate policy and its $85 billion monthly bond-buying program has created an environment where there's no alternative to stocks, Cooperman said.
He added that "very strong economic growth" would be a negative for stocks because that would bring the Fed into play. If we starting seeing 3 or 4 percent growth and tapering begins, then the markets will start to worry."
While low interest rates have helped investors, they hurt savers, he noted.