Leon Cooperman Warns 2027 Recession Could Hit Stocks as S&P 500 Earnings Growth Tops 50%
Updated
Updated · TradingView · Aug 20
Leon Cooperman Warns 2027 Recession Could Hit Stocks as S&P 500 Earnings Growth Tops 50%
3 articles · Updated · TradingView · Aug 20
Summary
Cooperman said a U.S. recession could arrive in 2027 and likely pull the stock market lower, arguing investors are underestimating how fast today’s strong backdrop can reverse.
His bearish case centers on overly optimistic earnings forecasts, sticky inflation and waning AI enthusiasm, with the veteran investor saying he is broadly negative on markets and avoiding technology stocks.
The warning cuts against still-strong data: the S&P 500 is on pace for more than 50% year-over-year earnings growth this quarter, the Nasdaq 100 is up about 19% this year, and the Atlanta Fed sees 4.3% third-quarter GDP growth.
Oil and consumer data are key pressure points in his view, with Brent near $89 a barrel—about 22% above pre-Iran-war levels—and U.S. retail sales down 0.6% in July, a mix that could squeeze margins and spending.
Investors now face a test of whether earnings revisions weaken before headline growth does; if inflation cools and AI spending keeps producing profits, Cooperman’s recession call would lose force.