US Treasury yields have risen rapidly this year, but billionaire investor Leon Cooperman thinks they’re still too low and said he’d choose stocks over bonds.
The Federal Reserve raised interest rates by 75 basis points during its June meeting, and a strong jobs report on Friday cleared the path for more rate hikes in upcoming meetings. Even so, Cooperman is “shocked that interest rates are as low as they are”. It’ll be difficult for inflation to cool down given the tight labour market, according to Cooperman. “We’re in an environment where there’s much more demand for labour than there is supply -- that’s not an environment where prices go down,” he said.
Among the headwinds stocks face, Cooperman said that a strong dollar is “negative for corporate profits”.
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