Leon Cooperman reiterates his conviction that interest rates will go higher, and the S&P 500 (at 19 times earnings) is too high.  He is concerned that the wealthy won’t be able to handle the deficit at 8%.  Even a 6% bond yield isn’t exciting.

Mr. Cooperman still thinks the market is going nowhere for a very long time and reiterates the story of the Pharoah’s dream interpreted as having 7 prosperous years followed by 7 lean years.  We’ve pulled forward a lot of fiscal demand, and when we have to start dealing with the large deficits, this will be bad for corporate profits and economic growth. He thinks we will have a recession sometime next year, but near term, the economy is fine.