InvestIdeas

Investors would be "lucky" to earn 5 percent to 6 percent in equities. Cooperman said it is "hard to find things that are terribly mispriced," given central banks' loose monetary policies have elevated asset prices across the board.

"I would not expect the market to do that much on the upside. We have to accept the reality that if interest rates belong where they are, that's a slow-growth world and returns on equity are going to be lower than they have been historically. And I accept that fact."

1. “The first is recession, that’s what generally causes bear markets”
2. “Second is a hostile Fed.
3. Third would be a euphoric, overvalued market, which itself becomes vulnerable to a big decline.
4. And fourth would be some unforeseen geopolitical event.”

“If you take the corporate tax rate from the mid 30s down to the high teens and you repatriate a couple trillion dollars of offshore earnings, we’re talking about earnings added on to the S&P of over $10 a share. That’s a very significant development.”

1. “The first is recession, that’s what generally causes bear markets”
2. “Second is a hostile Fed.
3. Third would be a euphoric, overvalued market, which itself becomes vulnerable to a big decline.
4. And fourth would be some unforeseen geopolitical event.”

“If you take the corporate tax rate from the mid 30s down to the high teens and you repatriate a couple trillion dollars of offshore earnings, we’re talking about earnings added on to the S&P of over $10 a share. That’s a very significant development.”

“In terms of my long-term outlook, to be honest with you, stocks are the best place to be, but I just wouldn’t expect much from the major averages”.

“I’m prepared to be in that kind of environment where I have to stock pick my way to success.”

“The cyclical forces that determine the market outlook are basically positively positioned and that’s why I’m heavily invested,” Cooperman said.

“We have a central bank that wants more inflation. Until that changes, I think the market is probably in good shape.”

“Everybody is worried about inflation. Inflation is a positive for common stocks because inflation in companies’ costs works its way into selling prices, which lift the nominal level of revenues and earnings.

Inflation becomes a problem for the market when the central bank is moving to curb inflation,” Cooperman said.

"I think QT, Fed tightening, the high price of oil, or maybe a strong dollar — some combination of these four things creates a recession, and the final bottom of the market will be about 35% below the 4,800 peak".