Leon Cooperman sees "euphoria" in components of the market and is skeptical in regards to the long-term prospects

Billionaire Leon Cooperman told CNBC on Wednesday that he believes the stock market will struggle to generate significant returns in the years to come, having rallied sharply from the lows in the pandemic over the past 10 months.

"I think the short-term outlook is probably okay. In the long-term, I think we're going to borrow from the future," Cooperman said on Squawk Box.

"Whenever you've shopped in the market when it was being sold at the current multiple of, say, 22 times or more, you've never really made any serious money in a year, three years, five years. I think that's us" added the chairman of the Omega Family Office.

The Federal Reserve's accommodative monetary policies and aggressive congressional fiscal stimulus in response to the pandemic "just add fuel to the fire" on Wall Street, Cooperman said.

"There is a significant part of the market today that is in euphoria. You see 50% price movement. You see one SPAC per minute. That is something that is ringing the bell," warned Cooperman.

While surveying the market, Cooperman said his approach was "looking for value". He added, "I have long-term concerns because I think the policies we are pursuing are unsustainable."

"We have this push-pull. We have the push of a very, very simulative financial and monetary policy. It's hard to fight that right now," said Cooperman, just hours before President-elect Joe Biden takes office.

"Then we have the train of a new government," which is likely to have policies like higher corporate taxes and more regulation, he said, adding that he believes those policies could harm the stock market. "It's a less business-friendly, less-friendly business environment," he said.

Cooperman has been a frequent critic of progressive Democrats and outgoing President Donald Trump in the past. He said he voted for Biden in November when it was "against my own economic interests". Instead, he said he had "chosen my values ​​and my values ​​were not with President Trump".

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