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LEON COOPERMAN: If You're Buying Bonds, You're 'Playing With Dynamite'

Leon Cooperman
Leon Cooperman

Reuters/ Rick Wilking Leon Cooperman.

Leon Cooperman appeared on CNBC's Squawk Box, and he said that buying government bonds right now was like "playing with dynamite."

Cooperman said the risk in financial markets rests "unequivocally" with bond investors right now.

Cooperman said US government bonds usually move in connection with nominal GDP, which is a combination of real GDP and inflation.

Cooperman said that if we get real GDP of about 2% to 3% and inflation of about 2% to 3%, then nominal GDP comes to about 4% to 6%.

To Cooperman, this means it wouldn't be unreasonable to expect that US 10-year Treasuries could rise to 4%, 5%, or 6%, and C ooperman said that if this happens, bond investors would see capital losses.

On Thursday morning, the yield on the US 10-year Treasury bond fell to 2.27%.

Leon Cooperman also spoke on Apple, as he was on live as Carl Icahn's open letter to Apple CEO Tim Cook crossed the wires, with Cooperman saying that Apple shares were currently 20% undervalued.



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