David Tepper is easily my favorite hedge fund manager to watch interviewed, and he doesn't disappoint in the following clip where he lays out his case for thinking the market goes much higher. He makes short work of explaining monetary policy over the next six months, and basically comes to the conclusion that no matter what happens, the market goes higher. He even recommends short sellers keep a shovel handy to dig themselves out of the holes they'll find themselves in betting against the market. Hard to argue with this guy.
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Bastard IE at work...
Is he always so flustered when he speaks? If he didnt make $2.2B last year I would be like "Who is this nervous wreck??"
Not everyone was born for TV. I appreciated his candor and straightforward delivery though. He makes some convincing arguments...
Youre right. You have added so much quality to the thread with your remark.. anywayyy...
Not quite understanding him on the flows point... so tax receipts come to the gov. mainly April through Sept. Why wouldn't you want to save the tapering until Oct-March when people are not getting hit with tax payments?
He is the farking boss.
he makes some great points, but equities look super cheap because of really low or even -ve rates. If he really thinks that a taper is coming, then rates will rise, no?
Interesting chart he had for equity risk premuim, I was looking at something similar the other day when people were first bringing up the argument that this market reminds them of the 1999 market. Even though markets are up a huge % off the lows, the earnings multiples are still close to only half of what they were in the dot com bubble. I do however have a issue with his views on the Fed tapering QE down later this so the economy isnt growing in super roid mode. When has the Fed ever been proactive in monetary policy, so for him to assume the Fed will do the right thing and taper down at the right time is ill-founded. Anybody else agree?
I agree in the sense that the Fed absolutely will not taper back QE proactively because at this point because they would rather have the economy in super growth mode because they view themselves as having the tools to fight inflation rather than deflation; thus, they will continue QE until the economy has fully recovered and then some to blast home the point that inflation is the name of the game and they will not allow deflation at literally any cost.
I consider myself a beginner when it comes to developing opinions on market trends, but I was under the impression that the economy has actually been quite sluggish. MBA purchase applications composite index for the last week decreased 7%. Regardless of credit easing, the Fed is basically "pushing the string" because potential homeowners aren't necessarily taking advantage of bank lending. I even heard (during a Bloomberg interview with Komal Sri-Kumar) that the Fed is more likely to increase the rate at which it is purchasing bonds and mortgages.
US Consumer Credit for the month increased by $3 billion, but the increase was mostly spurred by increases in non-revolving debt like student loans. A recent drop in the unemployment rate was offset by the decrease in average hours worked, meaning the increase in jobs were mostly part-time. Manufacturing weakened in April as evidenced by a 0.5% decrease in the US Industrial Production index. Producer Price Index dropped by .7% due to drops in food and gasoline prices, which (I was under the impression) is a hugely important indicator that there is little risk for inflation (so why taper QE)?
Can someone explain to me where there is evidence of an improving economy?
TEH MARKET IS AT ALL TIME HIGHS! Q.E.D.
hahahaha
ZeroHedge isn't so quick to buy into Tepper's hype:
http://www.zerohedge.com/news/2013-05-15/tepper-files-march-31-13f-cuts…
Probably the least surprising thing in the history of things.
True, but I am still nowhere near sold on Tepper's math here.
If the Fed prints enough money they can will the stock market to just about any number. DOW 1 million, anyone? This is not real wealth, it's just money printing. I wish my condo were more expensive, the government's going to end up paying off my mortgage for me when all's said and done.
The housing bubble was the result of the government printing too much money. Maybe we'll see an equity bubble now (or something else, like Tepper said, the money has to go somewhere). Printing money doesn't create growth. That's the big fallacy underlying all central bank actions today. Just because we print money the economy is supposed to get better? If we print a quadrillion dollars, does that mean we'll all be cruising around in mega-yachts?
The powers that be are setting us up for stagflation. The only real question is when.
This is one of my favorite guys. He is sexy. Look at him, he just looks like a boss.
Tepper is a boss. Pretty sure he was drunk on Bloomberg a month or two ago.
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