What Leon Cooperman Bought during the Recent Market Sell-Off
Cooperman’s latest investment strategy
In the previous two articles, we saw that value investor Leon Cooperman has an optimistic view on the economy and the market. He also pointed out the excess leverage-based instruments are causing market disturbances while the overall economy is doing well.
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Among the major US indexes, the Dow Jones Industrial Average (DJIA-INDEX), the NASDAQ Composite Index (COMP-INDEX), and the S&P 500 Index (SPX-INDEX) fell 5.2%, 5.0%, and 5.1%, respectively, in the past one-week period. During the past week’s sell-off, Cooperman added to his investments in the equity market.
Cooperman noted during the CNBC interview, “We did no selling and we actually put a little more money to work.” He added, “Overall I think the market outlook is OK, and I think good stocks selection will be rewarded.”
Cooperman added, “Notwithstanding the craziness in the market, my only [outlook] change is that I don’t think the market has the 15 percent downside that I thought it had when it came into the year.” He noted that this occurred “because the economy is performing better and earnings are doing better.”
According to the recent earnings report provided by Factset, the earnings growth rate of the S&P 500 Index (SPY) stood at 14.0% in 4Q17, which is higher than the previous estimate of 11.0%. Among the various sectors of the S&P 500 Index, the energy sector and the technology sector contributed most to the overall earnings growth.