Leon Cooperman, a prominent hedge fund billionaire known for his disagreements with Senator Elizabeth Warren over her proposed wealth tax, is sounding a cautionary note about the
potential return of Donald Trump to the White House.
Cooperman expressed his concerns in a recent phone interview with CNN, where he stated, "It would be terrible for the country if Donald Trump were reelected. He's a divisive human being who belongs in jail."
Public criticism of Trump by a Wall Street figure like Cooperman is unusual.
Previously, Cooperman has been a major donor to Republican candidates and has clashed with Senator Warren over her proposed Ultra-Millionaire Tax.
However, Cooperman disclosed that he voted for Joe Biden in the 2020 election, albeit reluctantly.
In his recent interview with CNN, Cooperman expressed his dissatisfaction with the possibility of a Trump-Biden rematch in 2024, characterizing both options as "bad choices." He indicated that he does not expect either Trump or Biden to become their party's nominee next year. In the event of a Biden-Trump rematch, Cooperman suggested that he might abstain from voting.
"I'm looking for centrists, not radical left or right," stated Cooperman, who, according to federal records, donated to Republican Chris Christie's 2024 campaign over the summer.
In response, a spokesperson for the Trump campaign, Steven Cheung, asserted that Trump will be the nominee and emphasized his ability to boost the economy, secure borders, protect communities, and end unnecessary conflicts, claiming that Americans want a return to prosperity.
The Biden campaign did not provide a response to the comments.
On the economic front, Cooperman expressed concerns about the financial risks associated with the ongoing violence in the Middle East. As the CEO of Omega Advisors, he expressed fears of potential financial consequences arising from the conflict, particularly noting that recent market declines indicate that the stock market is beginning to reflect the current reality.
The World Bank has warned that an escalation of the war in the Middle East could have far-reaching effects on global commodity markets, particularly oil, potentially leading to unprecedented price levels. Even a minor disruption, similar to the one experienced during the Libyan civil war, could push oil prices to around $102 a barrel, according to the World Bank's analysis. A more substantial disruption could see oil prices rise to $121 per barrel, while a severe disruption comparable to the 1973 Arab oil embargo could potentially propel oil prices to a staggering $157 per barrel.
Cooperman, in light of these ongoing risks, argued that the stock market is currently overvalued when compared to corporate profits. He questioned whether the market's current valuation, trading at 18, 19, or 20 times earnings, is justified, expressing concerns about the existing government policies and fiscal practices that have accelerated demand and contributed to the stock market's inflated value.
Moreover, Cooperman expressed alarm over the lack of fiscal discipline in Washington, pointing out that the national debt has surged from $20 trillion in 2017 when Trump assumed office to over $33 trillion at present. Photo by Gage Skidmore from Peoria, AZ, United States of America, Wikimedia commons.