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Hedge fund manager Leon Cooperman is looking for a recession in 2023 and expects the S&P 500 to drop 40% from January’s all-time high of around 4800. Currently, the S&P is down around 22% from its highs.
“I’m assuming by the time that this is over, that the market could be down 40% from its peak,” Cooperman said in a CNBC interview Tuesday.
Cooperman is positioning into dividend stocks and stocks that have iron-clad balance sheets.
The hedge fund manager said the economy is “overdue” for a recession, with the last one in 2008. However, he doesn’t see one this year due to the liquidity in the system.
He sees a rising rate environment over the next 12-18 months and called equities the best house in a bad neighborhood.
