Omega Advisors founder Leon Cooperman blamed officials at the Securities and Exchange Commission for failing to address the impact computerize trading has had on the broader market and how it exacerbates volatility during market swings.
The billionaire’s comments came after the Dow Jones Industrial Average suffered an almost 800-point drop on Tuesday and was down nearly 700 points on Thursday. The major stock indexes have plummeted in recent sessions as fears over a slowdown in economic growth and the U.S.-China trade war grip market participants. Tuesday was the index’s worst performance since Oct. 10.
“Bear markets don’t materialize out of immaculate conception. They come about from certain fundamental reasons the stock market is seeing,” Cooperman said. “The no. 1 cause of a bear market is the stock market smelling an oncoming recession. I won’t cite all the economic data, but there’s just no signs of recession.”