Steve Einhorn has helped investing legend Leon Cooperman deliver market-trouncing returns in his multibillion-dollar Omega Advisors hedge fund for nearly 20 years, and part of the duo’s successful approach to navigating the investment landscape involves heeding a bear-market checklist.
So what’s it telling them now?
“The unambiguous message delivered by the checklist is that the bull market will likely grind to higher highs for a while longer,” Einhorn told Barron’s in an interview posted earlier this month.
AMPHI Research & Trading’s Mark Rzepczynski took a deep dive into that checklist in his Disciplined Systematic Global Macro Views blog and found it to be “a good, simple indication when conditions are ripe for a change.” He added that it also “does provide a level of specificity that is often lacking from others.”
Here’s how he sees it currently shaping up:
So, essentially, the Fed raising rates and fears the economy is in the late stages of expansion are two areas of “concern” on the list, but at this point, according to both Einhorn and Rzepczynski, that’s not enough to feed the bears.
“A current market environment assessment does not appear stormy,” Rzepczynski wrote, echoing Einhorn’s thoughts from a few weeks ago.
At last check, no storm clouds were forming, with the Dow DJIA, +0.32% , S&P 500 SPX, +0.36% and Nasdaq COMP, +0.60% all adding to Friday’s strong gains. See Market Snapshot.
Read: Why a ‘Lehman-like episode’ could usher in ‘epic economic crisis’
