Stocks are the best investment out there right now, while government bonds are returning less than inflation, says Omega Advisors CEO Leon Cooperman.
“We find plenty of attractive stocks,” Cooperman says, according to CNBC.
Low interest rates make Treasury bills, cash and other investments less attractive namely because inflation outpaces the return.
“Then you’re left with equities,” Cooperman says, adding financial stocks are attractive as well.
Banks are lending less these days and have recapitalized in recent years, which makes their stocks stable although they often return less.
Good stocks in the financial sector include Bank of America, JPMorgan Chase and Citigroup, Cooperman says.
Some market watchers say stocks are due for break, including Doug Kass, who has set a target for the S&P 500 of 1,345, down from about 1,367.
“While I recognize the positive price momentum and the possibility of a further overshoot of my fair-value calculation, I remain cautious over the shorter term,” Kass writes on TheStreet.com.
Others agree a correction is coming, including Sam Stovall, chief equity strategist at S&P Capital IQ.
“The market continues to work its way higher. We are knocking on the door of the April 29 recovery high. It feels like there are an awful lot of people calling for a correction — or at least a digestion — and I’m one of them,” says Stovall, according to CNBC.
“We think we’re going to get to where we are now, or even as high as 1380 (on the S&P) and then maybe go down to the low 1300s before approaching 1400. That’s the scenario our technicians are talking about.”
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