Cooperman said he is "underweight"consumer discretionary, and dislikesutilities and government bonds.
He also said he is not a fan of the reflation trade and that the Federal Reserve’s “free money” will remain until the unemployment rate reaches below 9 percent—sometime “very late” this year.
Cooperman is “very negative” on Treasury bonds and expects the 10-year Treasury rate to reach 4 to 4.5 percent.
“The 10-year rate can get in line with nominal GDP,” he said. “So if the real growth is 3 to 3.5 percent and inflation is a couple percent, you can see the 10-year go up to 5 percent or higher.”
“But we bottomed a year ago on the 10-year and my guess is we’re in store for 2 to 3 years of rising interest rates.”
- Watch Cooperman's Previous Appearance on CNBC (Nov. 11, 2009)
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No immediate information was available for Cooperman or his firm.