“I’m one of the few people who don’t think interest rates are all that high,” says Leon Cooperman.  “I wouldn’t be surprised if the 10-year got to 5.5%….  There is no indication that the Fed is restrictive….  I don’t expect we see another high in the market for a long time.”

Mr. Cooperman also says that the S&P 500 is trading at 19 or 20 times earnings – too high, i.e., the equity risk premium is too low.  He also doesn’t see a recession on the near horizon, just eventually.  As the Pharoah’s dream was interpreted by Joseph as 7 abundant years of harvest followed by 7 years of famine, he seems to think this is the case for stocks.  So no new highs for the year, and the major averages are coming down.