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Leon Cooperman says we've reached the stage of the bull market that Warren Buffett warned about

1. Leon Cooperman sees risks in the late innings of the bull market. 2. S&P 500 has surged nearly 40% since April, reaching all-time highs. 3. The Buffett Indicator shows record market exuberance compared to GDP. 4. High valuations in AI sectors are concerning, indicating irrational exuberance. 5. Cooperman prefers stocks over government bonds due to inflation risks.

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FAQ

Why Bearish?

The article suggests a potentially overstretched market, reminiscent of previous bubbles. Historically, such conditions preceded downturns, as seen in 2000 and 2008.

How important is it?

The article highlights critical indicators of market health and investor sentiment that directly affect S&P 500 valuations.

Why Short Term?

Market sentiment can quickly shift, particularly if volatility increases or economic indicators worsen. Short-term dips may occur if irrational exuberance falters.

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