How far can good vibes push the market? That’s a question investors should think about, especially if events pan out as investing legend Leon Cooperman believes they will.
The billionaire hedge fund manager does not see the current rally in stocks as anything sustainable, and cautions that it is built more on positive sentiment than on anything solid. Moreover, he holds a pessimistic outlook regarding the S&P 500‘s ability to not only reach but also surpass its peak level of 4,800 achieved back in January 2022 for several years.
Diving into specifics, Cooperman observes that the rise in stocks this year is not attributed to improved fundamentals, but rather to improved sentiment. Investors are feeling optimistic about stocks at the moment, leading them to buy in, even though corporate profits aren’t keeping up. Cooperman cautions that this kind of optimism cannot last, and when it eventually falters, it will coincide with the Fed’s rising interest rates. This combination may bring about a recession in 2024.
“There’s a lot of crazy things going on in the market. I’ve never seen moves on such insignificant news as we’re seeing in the market today,” Cooperman has said, and he adds, regarding a prospective recession, “If we have one it may come next year, when people run out of money and the Fed keeps raising rates.”
This isn’t to say that there aren’t good investments to make right now, and Cooperman stays heavily invested in stocks that he describes as ‘good values.’ We ran a couple of his big holdings through the TipRanks database to see what the Street’s stock experts make of these choices. Let’s take a closer look.
WillScot Mobile Mini Holdings (WSC)
We’ll start with WillScot Mobile Mini Holdings, an office space company with a twist. WillScot focuses on temporary building spaces, including prefabricated office, classroom, and storage units. It’s an interesting niche, and Leon Cooperman clearly sees potential in it – evident from his significant stake in WSC, totaling 1,698,951 shares. At current valuations, his holding in…
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