Here’s how long it will take for the bull market to return

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on Jun 14, 2022
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  • Leon Cooperman says start of a new bull market is not on the cards.
  • He sees “now” as comparable to the great financial crisis of 2008.
  • The S&P 500 index is down more than 20% for the year at present.

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The start of a new bull market is not on the cards at least for anytime soon, says Leon Cooperman. He’s the Chairman and CEO of Omega Family Office.

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Highlights from Cooperman’s interview on CNBC

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Cooperman warns the fiscal and monetary policy in recent years have set us up to linger in the bear market for a while. Speaking with CNBC’s Joe Kernen this morning on “Squawk Box”, he said:

We’ve borrowed from the future and we’re in the give back period now. It’s like the Pharaoh’s dream of seven lean years following seven fat years. I’m not making a seven-year forecast, but it would be unlikely to go back into a bull market anytime soon.

The S&P 500 index slipped into the bear market territory after a worse-than-expected CPI print for May on Friday.

Buy the dip philosophy to fade moving forward

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Cooperman sees “now” as comparable to the great financial crisis and expects “buy the dip” philosophy to increasingly lose traction moving forward. He noted:

We’ve seen extraordinary speculation and I’m confident it’ll leaves some scars. We’ve had aggregate that draw down wealth equal to what happened in 2008. [People are losing money] and it’ll affect their thinking, giving way to get me out philosophy.

The U.S. Fed is scheduled for a policy meeting on Wednesday. Many are convinced the benchmark index down more than 20% for the year is now pricing in a 75 bps increase in interest rates tomorrow.

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