Leon Cooperman (Trades, Portfolio) thinks that if everyone knew that the current interest rate environment would last forever that stock prices would be much higher than where they are today.
But Cooperman doesn't think that low interest rates are here to stay forever. In fact he thinks interest rate policy should be changed now.
Cooperman says that there are four possible triggers to a bear stock market and explains if each of them is a worry right now:
- stock market starts to smell an oncoming recession, which he doesn't see on the near term horizon
- the market becomes euphoric in its valuations, he doesn't see that now either
- a geopolitical even which surprises, impossible to forecast
- the Fed takes away the easy money, Cooperman is more worried they won't do that
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