In an interview with Becky Quick on CNBC’s “Squawk Box” on Tuesday morning, legendary investor Leon Cooperman (Trades, Portfolio) shared his market outlook and discussed the criteria he is prioritizing in his investments.
The guru, who is the CEO and chairman of Omega Family Office, began his outlook with a reference to his previous appearance where he discussed the biblical account of Joseph interpreting the pharaoh’s dream regarding seven years of prosperity and seven years of famine.
“I am not making a seven-year forecast, but I basically believe we have had fairly irresponsible fiscal monetary policies. We pulled demand forward, so we gotta get our house back in order,” he said. “There is an explosion of debt in our system; that debt has to be serviced. We are probably facing an environment of continued high inflation, rising interest rates and, unless we go to fiat currencies, rising taxes.”
While the market “really isn’t cheap,” the investor said he is still finding individual opportunities that are attractively priced.
Given his conservative view of the market environment, Cooperman said his stock-picking strategy currently includes looking at quality, cycle-tested companies that are trading at a discount, offer dividend income, buy back stock and are run by reliable management teams. Some examples he provided were Cigna Corp. (CI, Financial), Energy Transfer LP (ET, Financial) and Lithia Motors Inc. (LAD, Financial).
“I’m having a decent year relative to the averages,” he said. “I am working too hard to be flat.”
He then went on to discuss energy stocks, which is one sector he finds “very attractive” currently.
Watch the full interview below.