Investment guru Leon Cooperman has added his voice to the chorus of cheerleaders who say the current bull stock market will only continue to charge deeper into record territory.
"The conditions that normally lead to a big market decline ... just aren't present," Cooperman told CNBC.
"The market's not cheap, but it's not expensive ... it's approaching normalization," said the hedge fund manager.
"Most bull markets end in overvaluation. I don't think we're overvalued," the chairman and CEO of Omega Advisors said.
"We have another 10 to 15 percent to go for that to occur."
On Wall Street, the Dow Jones index was set to record its biggest intraday percentage rise in more than a month on Tuesday, boosted by gains in industrial giants 3M and Caterpillar.
Both stocks contributed about 160 points to the Dow’s 195- point rise, Reuters reported.
“At these levels, only companies that have both top-line and bottom-line beats could make the market move higher,” said Rick Meckler, president of hedge fund LibertyView Capital Management LLC in Jersey City, New Jersey.
The market’s rally to record highs since last year’s U.S. presidential election has the feeling of being entirely risk-free – the S&P 500 yesterday established a record of 242 trading days without a decline of 3 percent from peak to trough.
Monday’s decline of 0.4% for S&P 500 didn’t nothing to dent the new record, which surpassed 241-day run that ended in January 1996. Back then, the market continued to rally despite the Southeast Asia currency crisis, the Russian debt crisis and the collapse of hedge fund Long-Term Capital to reach new highs by 2000.
That rally ended with bursting of the dot-com bubble and a recession, and markets proceeded to sink in 2000, 2001 and 2002 – the first three-year decline since the Great Depression.
“Attempts to call the top have proven futile and, for now, the market’s steady advance looks likely to persist,” The Wall Street Journal said in a blog post. “Key elements supporting the rally are well known. The global economy is strengthening and U.S. corporate earnings continue to grow.”
(Newsmax wire services contributed to this report).
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