"The market's not cheap, but it's not expensive ... it's approaching normalization," said the hedge fund manager.
Cooperman said his fair value for the market is about 17 times forward earnings. If President Donald Trump is able to pass his tax reform plan, Cooperman says he projects $150 in earnings per share next year. This results in a forecast of 2,550 for the benchmark index, which is roughly flat to Monday's close.
"Most bull markets end in overvaluation. I don't think we're overvalued," Cooperman said, and "we have another 10 to 15 percent to go for that to occur."
"The conditions that normally lead to a big market decline ... just aren't present," he added.
The hedge fund manager shared the key reasons for bear markets from his decades of investing experience.
1. "Accelerating inflation."
2. "On coming recession."
3. "Hostile Fed."
4. "Some kind of significant geopolitical event."
Cooperman founded Omega Advisors in 1991. The firm has approximately $3.7 billion in assets under management, according to its website.
His firm agreed in May to a $4.9 million settlement with the Securities and Exchange Commission after allegations of insider trading. Omega Advisors did not admit to wrongdoing.
This is a developing story. Check back for updates.