Leon Cooperman, the Chairman and CEO of Omega Advisors remained bullish about the U.S. equity market and optimistic about the country’s economic growth, says Cooperman in a letter to investors reviewed by ValueWalk.
Cooperman and his team believe that the U.S. equity bull market and country’s economic expansion would be “long-lasting and self-sustaining.” According to them, the U.S. economic growth “should be broad-based, low in volatility, and in a sweet spot.”
U.S. equity markets should deliver 6% to 8% return over the coming years
Cooperman and his team believe that the U.S. equity bull market should deliver a mid to high, a single-digit total return of around 6% to 8% over the coming years. According to them, the total returns consist of a 4% to 6% earnings growth and a 2% dividend yield.
“We are on the view that the current U.S. equity bull market will last quite a while, longer than the next twelve months. The principal reasons for this notion of extended equity bull market are our expectations of a synchronized long-lasting global economic expansion, and a synchronized kong-lasting period of global central bank accommodation.”
The hedge fund manager and his team said the U.S. share valuation is okay, and there is no alternative to equities from fixed-income markets. They noted that the U.S. equity market has a “very good valuation relative to bond interest rates and inflation.”
Cooperman believes central banks will remain investor-friendly
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