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"My world is cash and stocks. I think bonds are the bubble, not stocks. "
Billionaire hedge fund manager Leon Cooperman presented the assessment on Wednesday in an interview with CNBC, in which he also claimed that equities are "fundamentally cheap" as a result of the States' defeat of global equities. United States last week.
Last week, many investors have argued that a rapid rise in the yield of 10-year Treasury bills
TMUBMUSD10Y, + 0.21%
greater than 3.26% contributed to a sharp decline in the Dow Jones Industrial Average.
DJIA, -0.36%
lose more than 1,400 points in two days and led the blue-chip and the S & P 500
SPX, -0.03%
their greatest day falls since February.
Lily: This is why stock investors suddenly panicked at the rise in bond yields
On Tuesday, equities rebounded sharply, with major indexes registering their largest single day gains since March but stagnating on Wednesday. The S & P 500 remains down 3.6% so far in October, bringing its cumulative growth to about 5.1%, while the Dow Jones index is down 2.8% this month, which leaves a 4% gain since the beginning of the year.
While markets have argued that rising yields and stock market reaction are deterring investors from fearing a slowdown in growth, Cooperman, the founder of Omega Advisors, said the economy "is too strong, opposite. the conditions "that normally lead to a significant decline are simply not present".
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