The stock market “represents the best house in the financial asset neighborhood,” Omega Advisors CEO Leon Cooperman told CNBC Monday.
“We find plenty of attractive stocks” that are inexpensive at a time when U.S. Treasurys can’t keep pace with inflation , cash is at zero and high-yield “now has record tight spread against Treasurys,” which Cooperman doesn’t hold. “Then you’re left with equities,” the investor said.
That means going into an area he eschewed as recently as November — financial stocks. After saying then financials were “challenged,” now he says they “still have room to run,” even with the Volcker Rule limiting proprietary trading by banks looming.
His choices are Bank of America, JPMorgan Chase, and Citigroup in a wide-ranging portfolio whose top picks include the SPDR Gold Shares Trust,Boston Scientific, E*Trade Financial, and Sunoco, among many others.
Technology is another area he likes, which is why he owns Apple and Qualcomm.
But if a new investor wanted to know where to put his or her money, he would say Google. It’s a cheap stock considering its “tremendous balance sheet, topline revenue growth north of 20 percent” and “reasonable valuations.”
CNBC Data Pages:
- Dow 30 Stocks—In Real Time
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- Track Treasury Prices Here
Disclosure information wasn’t given specifically for Leon Cooperman or his company.