Wall Street investment mogul Cooperman is cautious! U.S. stocks are being reduced at highs, holding a large amount of cash
Wall Street investment mogul Leon Cooperman is reducing his holdings in profitable stocks and increasing his cash position, holding about 15% in cash, significantly higher than Wall Street's standard of 5%. He expresses concerns about overvalued market conditions and an unstable policy environment, opting to sell on rallies. He is focused on undervalued stocks with growth potential, such as Fidelis Insurance and Vertiv Holdings. Cooperman has a complex attitude towards Trump's tariff policies, believing they may trigger inflation but could also help reduce the deficit
Wall Street legend investor Leon Cooperman is currently selling profitable stocks and significantly increasing cash holdings.
On Monday, Eastern Time, Cooperman, chairman of Omega Family Office, stated:
“Market valuations are too high, coupled with an unstable policy environment. I do not like the current market conditions. Basically, I will sell any stock that goes up. I sell high and reduce holdings at high prices. We have a batch of well-performing stocks, and we have kept pace with the market, which is a good thing.”
Under this strategy, Cooperman currently holds about 15% in cash, far above Wall Street's typical 5% cash allocation.
So far this year, the U.S. stock market has performed poorly, with the S&P 500 index maintaining only a slight positive growth since the beginning of the year. Despite the overall conservative trend, Cooperman is still looking for undervalued stocks with growth potential.
He mentioned that one of his favorite stocks is Fidelis Insurance Holdings, a Bermuda-based insurance and reinsurance company, whose stock price has fallen about 12% this year. Another is the technology infrastructure company Vertiv Holdings. The company’s stock price has plummeted 22% this year, dragged down by valuation concerns related to AI stocks, and at one point on Monday, it fell over 6% in a single day.
Cooperman emphasized that the investment targets he focuses on must have comparable growth prospects to the market while trading at prices below the overall market valuation.
Regarding Trump's tariff policy, Cooperman expressed a complex attitude of both support and concern. Economists worry that tariffs could trigger inflation, while Cooperman pointed out that Trump's measures to reduce the deficit could have a tightening effect on businesses that rely on government spending.
He said, "The president is on the right track, but I think his approach is very unstable. So I hold a conservative view."
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