David Tepper: There’s “Very Little Downside” to Equities

David Tepper, the founder of Appaloosa Management, was on CNBC discussing his macro outlook this morning.  It’s a good interview and I would recommend taking the time to digest his comments since he’s one of the few hedge fund guys I think we can take very seriously. I have to admit though, I am practically stunned by how unabashedly bullish he is….

Here’s a brief round-up of Tepper’s views:

  • On the economy – the economy is not bad right now.
  • The unemployment rate won’t decline to 6.5% until 2015.
  • There is a global central bank “put” in place.
  • The ECB can lower interest rates in Europe whenever they want.
  • Credit markets aren’t in bubble territories, but they’re “rich”.
  • You can’t short bad credit with the Fed implementing such massive stimulus.
  • The stock market is cheap.
  • There is very little downside to the equity market.
  • There is significant upside to the equity market.

 

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Source: CNBC

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

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