- Leon Cooperman told Bloomberg TV he prefers equities to bonds in the current climate of low yields.
- "I'd rather be in a common stock than I would be in a bond any day of the week, given the relative price of bonds versus equities."
- He reiterated his prediction for a recession in 2023 and the S&P 500 falling 35%-40% from its peak.
Stocks are more attractive than bonds as yields remain too low, billionaire investor hedge fund manager Leon Cooperman said.
With consumer price inflation at 8.6% and 10-year Treasury yields below 3%, bonds have no real return, making stocks comparatively better, he told Bloomberg TV on Monday.
"I'd rather be in a common stock than I would be in a bond any day of the week, given the relative price of bonds versus equities," Cooperman said.
But despite his preference for stocks over bonds, the Omega Advisors chief executive still isn't that sanguine about stocks.
"I'm of the view that equities are the best house in the financial asset neighborhood, but I don't like the neighborhood," Cooperman said. He added that he's been cautious, while remaining "a seller on strength and not a buyer on weakness."
Cooperman's comments come as recession fears grow on Wall Street, set off in part by growing global economic uncertainty over Russia's invasion of Ukraine.
He doubled down on his prediction that a recession will come in 2023, with the stock market hitting a bottom after the S&P 500 falls 35%-40% from all-time highs..
"I think that ultimately, the price of oil, or the Fed, or maybe the strong dollar will lead us into a recession," he said.