David Tepper Says the Market is Not Overheated

The head of Appaloosa Management is “rejecting arguments that stocks are overvalued and believes there are still plenty of opportunities,” according to a recent CNBC article. Tepper says “any comparisons to past overheated markets are ridiculous,” adding that while stocks do look expensive, higher multiples are supported by the global economy in which he believes growth will continue and earnings will improve. Tepper argues further that stocks are still inexpensive relative to interest rates, and any rate hikes from the Fed will be slow in coming. The article cites Tepper’s 2010 prediction that “either the market would rally on strong […]

Tepper Likes the Market’s Economic Backdrop

In a recent CNBC interview, Appaloosa’s David Tepper said that while stocks are not “really cheap,’” current economic conditions provide a solid backbone for the market. “Listen,” Tepper argued, “it’s hard to go short when you still have the drugs being given.” The hedge fund manager emphasized the importance of reduced regulation, a “cornerstone of President Trump’s platform.” On the other hand, he argued, the new administration’s stance on immigration is “dangerous.” Regarding interest rates, Tepper asserted in the interview that the Fed is “way low where they should be,” but believes that rising rates shouldn’t threat businesses or the […]

Tepper, Dalio, Gundlach on Opportunities and Risks in Today’s Market

Investment heavy weights, including David Tepper of Appaloosa Management and Ray Dalio of Bridgewater Associates recently shared their market insights with Forbes. Tepper’s view on the US market is that it trades at around fair value, but that it can “grind higher” barring any major outside event (i.e. a Brexit or something else). The most important thing facing investors right now, says Tepper, is the Federal Reserve. He believes the Fed will be very patient and let some inflation emerge before raising interests rates. William Conway, the billionaire co-founder and chief investment officer of the Carlyle Group, compares the US […]

Chinese Easing Might be Magic Formula for Stocks says Tepper

In a recent CNBC interview, hedge fund manager David Tepper says, “if there was a magic formula, it would be China really easing a lot, and I consider them much much too tight still and they play a lot of games with their economy.” He continued, “not one quarter, but . . . a couple hundred basis points.”  Tepper opined that “the United States is great,” it is China “that’s really causing the problem; it’s everything related there.” He said the situation makes it “really hard for the Fed” and “people may underestimate . . . how fast the Fed […]