**[Legendary Investor Cooperman Bets on U.S. Recession Next Year: Rising Inflation Could Hit U.S. Stock Valuations Hard]** BlockBeats News, August 19 – Billionaire investor and Omega Advisors CEO Leon Cooperman warned this week that the U.S. economy could fall into a recession within the next year, dragging down the stock market. He pointed out similarities between the current market and the collapse of the "Nifty Fifty" in the 1970s and expressed concerns over cooling optimism surrounding AI. In an interview with CNBC, Cooperman stated: "I think we will see a recession sometime next year, which could lead to a market decline." He also believes that market expectations for S&P 500 earnings growth are skewed (FactSet data shows an expected year-over-year increase of over 50% this quarter). Currently, Cooperman is notably diverging from Wall Street's mainstream bullish outlook, particularly avoiding tech stocks and maintaining a negative view of the overall market. He cautioned investors not to underestimate the risk of an inflation rebound. Brent crude oil remains elevated post-Iran war (around $90 per barrel, over 20% higher than pre-war levels), while July retail sales fell 0.6% month-over-month (far below the expected 0.1% growth). Higher inflation could weigh on stock valuations, reminiscent of the sharp decline in growth stocks following oil price surges in the 1970s. "The most dangerous phrase in investing is: 'This time is different,'" Cooperman remarked. He warned that the market is almost universally bullish, and if a negative catalyst emerges, investors could sell off quickly. Meanwhile, volatility in the bond market is adding pressure. On Tuesday, the yield on the U.S. 30-year Treasury bond briefly hit 5.33%, the highest since June 2007, breaking out of a three-year trading range. Analysts have cautioned that if yields rapidly climb toward 6%, the stock market could face further valuation pressure. Historically, after a similar trend in 1999, the S&P 500 entered a correction phase accompanied by the bursting of the dot-com bubble. [Original Link]