(Forbes) Billionaire investor Leon Cooperman told CNBC on Friday that he believes the market has finally reached the bottom after weeks of economic turmoil caused by the coronavirus outbreak—he’s a lone contrarian voice as others rush for safer assets like bonds.
- “If I’m right on the virus call...I think the market at the recent low of 2,187 [on the S&P 500] was close enough to the bottom to be called the bottom,” he said, adding that he’d be less optimistic if the crisis extends into the third quarter.
- Earlier this month when the sell-off was heating up Cooperman advised investors to “just know what you own. and be patient.”
- As markets recouped some losses earlier this week, the BlackRock Investment Institute noted that the sell-off had created long-term value for investors and advised clients that it now favors “rebalancing into risk assets.”
- “This is not your last chance” to buy, Cooperman advised investors on Friday.
Crucial quotes: Bespoke Investment Group had this to say about the timing of stimulus bill and reaction from investors: “We should know by noon whether the [House] bill will be able to be passed today, but given it's a Friday and the market is closed for the next two trading days, it's hard to convince investors to hold equities into a weekend where the headlines are more likely to be bad than good.”
Tangent: Cooperman also told CNBC that he believes oil prices are on the upswing and that he’s betting on energy stocks. Over the last few weeks, the pressure on the oil market has boiled down to supply and demand: demand for fuel has plummeted as people around the world stopped traveling and working as a result of the coronavirus, and supply is poised to skyrocket as Saudi Arabia and Russia ramp up production and cut prices. “The best cure for low oil prices is low oil prices,” he said. “At these prices, a lot of companies will go out of business and the supply and demand will tighten up.” The WTI crude benchmark was hovering around $21.34 per barrel. Before the crisis began, prices were more than $60 per barrel.
Key background: Cooperman, who Forbes estimates has a net worth of $3.2 billion, is the chairman and CEO of Omega Family Office. He spent twenty-five years at Goldman Sachs, where he built up the firm’s asset management division. He settled SEC insider trading charges by paying $4.9 million in 2017.
