Cooperman Warns of 2027 Stock Drop as $89 Oil and AI Hype Signal Recession
Updated
Updated · Business Insider · Aug 17
Cooperman Warns of 2027 Stock Drop as $89 Oil and AI Hype Signal Recession
2 articles · Updated · Business Insider · Aug 17
Summary
Leon Cooperman said the US could slip into recession next year, a downturn he expects would drag stocks lower as investors reassess lofty earnings and AI-driven valuations.
The billionaire investor tied that call to what he sees as an aging cycle: S&P 500 earnings growth above 50%, crowded bullish positioning and AI enthusiasm that could fade like past boom-and-bust episodes.
Brent crude near $89 a barrel—up 22% since the Iran war began—was his main inflation warning, with Cooperman arguing higher energy costs could pressure both consumers and equity multiples.
July retail sales fell 0.6% versus expectations for a 0.1% rise, reinforcing his view that households are already tightening spending even as Atlanta Fed estimates point to 4.3% third-quarter GDP growth.
His bearish stance still runs against Wall Street's broader optimism: the Nasdaq 100 is up 19% this year, and most forecasters continue to back AI demand and returns on investment.