Dear Reader,
Good morning!
Today I want to talk about billionaire investor Leon Cooperman’s market prediction:
He says we are at a market top.
Remember what Paul Tudor Jones said last week, when he predicted an “everything rally”...
A 1999-style “blow off the top” surge that could send stocks up another 40%-plus.
Cooperman doesn’t say that, but he does say we’re in the phase of our bull market that Warren Buffett warned about in a 1999 Fortune Magazine article…
Buffett said, “once a bull market gets underway, and once you reach the point where everybody has made money no matter what system he or she followed, a crowd is attracted into the game that is responding not to interest rates and profits, but simply to the fact that it seems a mistake to be out of stocks.”
Well said.
Cooperman says this is where we are now.
Here’s what I say:
There are two things we have to do now -
We’re in the last innings of the game and we don’t know when the party’s ending.
In 1997, 1998, 1999, the party kept going. Everybody knew it was overvalued and the market rallied for a couple more years anyway.
When you look at other U.S. presidents in history, markets that got to this point kept going up, and that’s okay.
This is why I don’t short stocks.
Yes, they’re overvalued, but you don’t know when that’s going to end.
People are drunk on this market euphoria. It actually affects brain chemicals. People can make crazy decisions for long periods of time.
Here’s how we protect ourselves:
Step 1: Think of it like a party when you start looking at the exit. That’s where my head is right now. I’m still at the party but I’ve got one eye on the exit, calculating when I’m going to get out of here.
Step 2: Create two columns in your portfolio:
Stocks you’re married to, and stocks you’re just dating, okay?
This is what I do.
There are stocks I’m married to - companies that have serious, durable, competitive advantages.
I call them super competitors.
Companies like Meta, UnitedHealthcare, Boeing.
These are super competitors.
These are companies I’m not selling unless their competitive position changes.
They’re durable now and really tough to compete against.
The other column is stocks I’m dating.
They may be cheap on a valuation basis, have tons of money coming into them, they’re catching tailwinds from a massive mega trend…
We talk a lot about these kinds of stocks here at Behind the Markets.
You don’t have to be a rocket scientist to figure that out.
But you’ll notice that in Behind the Markets I tend to recommend stocks that have gotten cut in half.
So, where do you put your money now? Where do you find bargains in an all-time-high market?
If you look through our model portfolio/track record you’ll see a pattern.
That pattern is buying great companies when they’ve stumbled on their toes…
We recommended Meta… UnitedHealthcare… Boeing…
Great companies that stumbled on their toes.
The other big opportunity we see in this market is energy.
The energy market is SO CHEAP.
Energy companies have lagged behind the market in 2025 because OPEC has prioritized pumping extra oil, crushing energy prices.
But I believe these low prices won’t last.
When you consider AI’s demand on energy, it’s crazy - it really is.
The whole energy sector isn’t reflected at all in this bull market.
Energy stocks don’t even reflect their own fundamentals!
I have a history of making unpopular calls - over and over again pushing my readers to get into “hated” sectors and hold on for massive gains over time.
The other sectors that are cheap right now are REITs and biotech/pharmaceutical companies.
We know why pharma’s cheap - tariffs are a factor, and Robert F. Kennedy Jr. is like a bull in a China shop at the FDA…
So everyone just ran away from these stocks.
But clarity is starting to come into the sector, and with it, money.
We like to zig when others zag, and zag when they zig.
This is how we find bargains.
And believe me, there are still bargains in this market.
Even when you have a market top, there’s places to be, and it’s where everybody else isn’t.
“The Buck Stops Here,”
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Written by Dylan Jovine