You won’t find many investors with an all encompassing market understanding like Leon Cooperman. He’s one of the only investors I know of who has a truly comprehensive micro and macro perspective. In fact, his views on value investing combined with a macro approach are so well thought out that I find myself questioning my own top down approach every time I hear Cooperman speak. You should check out his interview with Barry Ritholtz if you haven’t listened to it.
I tuned into Bloomberg for a few minutes yesterday and was pleasantly surprised to find him discussing the markets. He offered five reasons to remain bullish:
- This would be the first time the market has peaked before a Fed tightening since 1950.
- Bear markets come about for a reason, usually caused by recession, overvaluation, hostile Fed or geopolitical event. He sees the risk of all these overblown.
- Individual investors aren’t bullish enough. He doesn’t see enough euphoria.
- We’ve already seen a significant correction with the average common stock down 20% over the last 52 weeks.
- There are no good alternative investment options relative to stocks.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.