Billionaire Leon Cooperman, CEO of Omega Advisors has provided a downbeat outlook for US stocks and the S&P 500 index. He struck a wary tone on the economy indicating that the markets will remain conservative for the next few years. Cooperman said to Business Insider that the US will face slow growth and high inflation leading to economic stagnation.

The US stocks and the S&P 500 “index is going nowhere,” he said cautioning investors ahead of the calm before the storm. The ongoing trade wars and tariffs also play a pivotal role in the economy’s decline, he said. The conflict would disrupt oil flow, derail supply chains, and eventually drive up prices.

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US Stocks & the S&P 500 Index Positioned to Dip, Says Billionaire

Leading US stocks are on a slippery slope lately and could turn volatile as Trump’s 90-day pause on tariffs would end next month. The S&P 500 index is currently at the 6,000 mark and surged nearly 2.8% year-to-date. The price spurt could soon end, says Cooperman as the markets have peaked and remains overpriced.

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When the tariffs are extended, institutional funds would be forced to initiate sell-offs and trim their holdings. US stocks and the S&P 500 index would be the hardest hit as clients exit the markets. Taking an entry position in gold remains high as it is a hedge against uncertainties.

Gold’s XAU/USD index is already bullish and had touched $3,450 on Monday’s trading session. The precious metal is prepared for next month’s playout and could rally sharply in the charts. Bank of America, Goldman Sachs, and JP Morgan are all bullish on gold and BofA had recently projected that it could reach $4,000 this year. If gold prices cross the $4,000 mark, US stocks and the S&P 500 index would see a major decline.