Renowned hedge fund billionaire Leon Cooperman, who has always made headlines with his confrontation with Sen. Elizabeth Warren over her suggested ultra-millionaire tax model, has issued a word of caution to voters with regards to re-electing Donald Trump as President.
Cooperman conveyed his concern in a conversation with CNN late last week, stating, “To see Trump resuming office would be disastrous for the nation.” Holding an unapologetic opinion of Trump, Cooperman further opined, “He exhibits divisive tendencies which are not suited to the Oval Office but more to a prison cell.”
It is not typical for Wall Street moguls to publicly censure Trump, making Cooperman’s comments significant. Generally, Cooperman has been known to support the Republican Party, contributing generously to their campaign funds, whilst simultaneously staunchly contesting Warren’s ultra-millionaire tax proposal.
Despite this publicly assertive opposition to Trump and somewhat lukewarm endorsement of his traditional Republican allies, Cooperman paradoxically admitted to casting his vote for Joe Biden in the 2020 Presidential Election, albeit with significant reluctance.
While contemplating about the forthcoming Presidential Election in 2024, Cooperman admitted he wasn’t exactly enthusiastic about a Biden-Trump face-off. He dismissed both as “undesirable alternatives” and predicted neither of them would be their party’s selected candidate. Cooperman also revealed that in case of a Biden-Trump rerun, he might abstain from voting.
Cooperman’s political inclination leans more towards the centrists, rather than the radical extremes of left or right. This preference was clearly reflected in his recent financial support for Republican Chris Christie’s 2024 campaign.
Reacting to Cooperman’s statement, Trump campaign spokesperson Steven Cheung confidently proclaimed that Trump “will clinch the nomination and cruise to victory over Biden, as he possesses the unique ability to revitalise our economy, reinforce our borders, shield our communities and put a halt to futile warfare.”
Switching his attention to economics, Cooperman expressed his apprehensions over the potential financial risks emanating from the present conflict-ridden situation in the Middle East.
As the CEO of Omega Advisors, Cooperman is genuinely troubled about inevitable financial implications caused by the Middle Eastern conflict. He believes that current sell-offs in Wall Street reflect a stark awakening to the reality of the situation.
The international financial community seems to echo Cooperman’s anxiety. Just recently, the World Bank issued an ominous warning of an impending wider war that could destabilize global commodities markets, including oil, and put them in the throes of “uncharted waters.”
Specifically, even a minor disruption such as the one during the Libyan civil war could drive oil prices to an all-time high of $102 per barrel. More serious disruptions, according to the World Bank’s analysis, could see oil prices explode even further, up to $157 a barrel.
Cooperman, reflecting on these dire possibilities, stands by his belief that the stock market is overpriced compared to corporate profits. He stated, “Weighing whether the market justifies 18, 19, or 20 times earnings, my answer invariably remains no.” He criticized the present administration’s attitude towards capital as hostile, lamented the intentional monetary and fiscal mishaps, and attributed all these to the government’s ill-advised strategies.
Finally, Cooperman expressed his concern over the increasing national debt, indicting the lack of fiscal “discipline” in Washington, irrespective of the political party in power. As an alarming reflection of the state of responses, the national debt has surged from $20 trillion in 2017, when Trump assumed office, to a whopping $33 trillion today.
