US Markets
Home›US Markets›Sectors›Leon Cooperman warns recession could hit next year as…
Leon Cooperman warns recession could hit next year as inflation rises
Cooperman said Brent crude was up 22% versus pre-Iran-war levels and warned higher oil driven inflation could pressure stock prices as AI hype fades.
Billionaire Leon Cooperman, a former Goldman Sachs CEO, told CNBC that he expects a recession sometime within the next year and said that could pull down U.S. markets.
Yahoo Finance reports Cooperman argued the current boom and bust cycle resembles prior periods, citing the 1970s Nifty Fifty crash where rising inflation, higher interest rates, and an oil crisis helped drive sharp declines for widely held growth stocks.
He said investors are overlooking the risk from higher inflation, pointing to oil as a specific trigger, noting that on Aug. 17 Brent crude was trading 22% higher than levels before the start of the Iran war.
Cooperman also said earnings estimates for the S&P 500 are mispriced, added that signs suggest the economic cycle is ending, and said he is negative on markets overall while avoiding tech stocks.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%|S&P 500 7,785.76 ▼0.2%