CEO of Omega Family Office Warns Market In Late Stages Of Bull Run, Calls AI Valuations 'Ridiculously High'

Benzinga

Leon Cooperman warned the market is in the late stages of a bull run, echoing Warren Buffett’s caution that bubbles form when momentum overtakes fundamentals. He pointed to inflated AI stock valuations and the S&P 500’s 40% surge since April. With the Buffett Indicator at 217%, Cooperman said risks of a sharp correction are rising.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:03Leon Cooperman, chair and CEO of Omega Family Office, warned on CNBC's Money Movers that

00:09the stock market is in the late stages of a bull run where bubbles can form and risks rise,

00:14according to CNBC. He cited Warren Buffett's 1999 remarks that bull markets often end

00:20when irrational exuberance replaces fundamentals. Buffett warned that bull markets attract investors

00:26motivated by fear of missing out and often end when inflated valuations, exuberance and momentum

00:32replace fundamentals. Cooperman said the current market reflects that sentiment, pointing to

00:38ridiculously high valuations in artificial intelligence stocks. The S&P 500 has surged

00:44nearly 40 percent since April, led by mega cap tech giants. The Buffett indicator, the ratio of

00:50stock market value to GDP, is at 217 percent, far above historic peaks. For all things money,

00:56visit Benzinga.com.

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