{"id":1006979,"date":"2026-08-17T18:17:24","date_gmt":"2026-08-17T18:17:24","guid":{"rendered":"https:\/\/www.europesays.com\/us\/1006979\/"},"modified":"2026-08-17T18:17:24","modified_gmt":"2026-08-17T18:17:24","slug":"us-recession-coming-in-2027-stock-market-drop-ahead-leon-cooperman","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/1006979\/","title":{"rendered":"US Recession Coming in 2027, Stock Market Drop Ahead: Leon Cooperman"},"content":{"rendered":"

Leon Cooperman<\/a> is back with another warning for investors.<\/p>\n

The billionaire investor and former Goldman Sachs CEO laid out a troubling outlook for the US economy and markets this week, predicting the US economy could tip into a recession<\/a> sometime within the next year.<\/p>\n

Speaking to CNBC, the Omega Advisors CEO pointed to several signs in today’s market that parallel past boom-and-bust cycles, such as the Nifty Fifty<\/a> era in the mid-1900s. The famed hedge-funder said signs are pointing to a coming end to the current economic cycle \u2014 and a round of turbulence that could also hit stocks as the hype for AI starts to fizzle out.<\/p>\n

“I think that we’re going to have a recession sometime next year, and that will probably bring the market down,” Cooperman said, adding that he believed earnings estimates for the S&P 500<\/a> were mispriced. <\/p>\n

The benchmark index is on track to post year-over-year earnings growth<\/a> of over 50% this quarter, the highest pace of earnings growth since the pandemic stock boom, according to the latest update from FactSet.<\/p>\n

Cooperman is in the minority on Wall Street, where most forecasters are feeling confident in the enduring demand for AI<\/a> and have faith that investment in the technology will pay off from ROI perspective. Despite a recent rotation in the AI trade, the Nasdaq 100 is on track for another year of double-digit gains, having climbed 19% from levels in January.<\/p>\n

Economic growth, meanwhile, has remained resilient so far this year, with GDP expected to rise by 4.3% in the third quarter, according to the latest estimates from Atlanta Fed economists.<\/p>\n

But investors appear to be shrugging off one key threat: hotter inflation, Cooperman said, pointing to the recent increase in oil prices. Brent crude<\/a>, the international benchmark, traded around $89 a barrel on Monday, still elevated 22% from levels prior to the start of the Iran war.<\/p>\n

US consumers<\/a> are showing signs they’re starting to tighten the purse strings under the weight of elevated inflation. Retail sales dropped 0.6% in the month of July, falling short of the 0.1% expected increase for the month, according to the Commerce Department.<\/p>\n

Hotter inflation<\/a> also poses a risk to stock prices, Cooperman said. He pointed to the rise and fall of the Nifty Fifty stocks, with the group of large-cap growth companies finally starting to crater in the 70s as oil prices surged.<\/p>\n

“The three most dangerous words in investment land vocabulary are: ‘It’s different this time,'” he said of the current investment landscape, later adding that he was “negative” on markets overall and avoiding tech stocks in particular.<\/p>\n

He also flicked at the possibility that people could dump equities en masse in response to a negative catalyst in the market.<\/p>\n

“I find it interesting that everyone is bullish,” Cooperman said. “They sell stocks whenever there’s a negative announcement.<\/p>\n

Cooperman has been a notable bear on Wall Street recently, even as other forecasters have doubled-down on the AI trade and lifted their expectations for the S&P 500. Speaking on Fox Business earlier this year, Cooperman flagged similarities between today’s market and past market bubbles, and said he saw a recession hitting the US<\/a> as soon as late 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"Leon Cooperman is back with another warning for investors. The billionaire investor and former Goldman Sachs CEO laid…\n","protected":false},"author":3,"featured_media":1006980,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[403129,64,79,390203,10067,403127,34011,9106,50043,18234,388,403128,402424,9580,20644,67,132,68,128990,403130],"class_list":["post-1006979","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-ai-start","tag-business","tag-economy","tag-hot-inflation","tag-investor","tag-leon-cooperman","tag-level","tag-market","tag-next-year","tag-oil-price","tag-quarter","tag-recent-increase","tag-several-sign","tag-stock","tag-today","tag-united-states","tag-unitedstates","tag-us","tag-us-recession","tag-year-over-year-earning-growth"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/117112225638633131","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1006979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=1006979"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1006979\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/1006980"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=1006979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=1006979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=1006979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}