Leon Cooperman, founder of Omega Advisors and former Chair of Goldman Sachs Investment Policy Committee, said he expects stocks to do well the rest of this year and into next year.
“We thought that the S&P can get to about 1575-1600 by year end,” said Cooperman. “We’re running ahead of that schedule. We think the stock market is not over yet and we could actually do well into 2008.”
Cooperman thinks bonds are overvalued. He said that inflation is reasonably contained and that the stock market can handle inflation up to about 3%.
His current views of the market remained confident, despite current 10-year Treasury yields. “I would say that that the stock market can tolerate higher 10-year rates than we currently have. I’d say 5.5%, 5.75%. The outlook we have for profits should not be a problem in the stock market.”