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Tepper stays bullish. Confounding gnomes who whispered the hedge fund honcho was turning...

Tepper stays bullish. Confounding gnomes who whispered the hedge fund honcho was turning cautious on stocks, David Tepper tells the CNBC crew the wave of liquidity that turned him bullish in the first place is getting even bigger. Fed tapering? So what, he says. The U.S. budget deficit over the next 6 months will only be $100B, while the Fed is scheduled to buy about $500B. That's $400B coming out of the bond market and going to investors who can buy more fixed-income, more real estate, more stocks. SPY erases losses and gets back to flat premarket.
Comments (11)
  • Paulo Santos
    , contributor
    Comments (17772) | Send Message
    Let's hope that Bernanke was watching the show, too, so that he might understand that it's no longer a Stock market - it's a Bernanke market.


    Free market out the window for a 1% change in the unemployment rate. It figures.
    14 May 2013, 07:59 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
    It is fairly obvious at this point that (un)employment has little to do with QE/ZIRP.
    14 May 2013, 05:05 PM Reply Like
  • peredina
    , contributor
    Comments (30) | Send Message
    Free market out the window ? No doubt.
    This is now a system without negative feedback.
    14 May 2013, 06:10 PM Reply Like
  • Timothy Phillips
    , contributor
    Comments (424) | Send Message
    Paulo - we are looking more and more like Roma near the end of the empire. Amazing how history repeats itself. It took 300 years of bad economic/social policy to destroy Rome, this time it will happen much faster with essentially the same policies (we are already over 50 years in).


    The US is now ranked 19th in the world in regards to economic freedom (from # 2 in 2000).
    14 May 2013, 08:21 AM Reply Like
  • Ted Bear
    , contributor
    Comments (573) | Send Message
    But....BB told us he does not have a clue where the stock market is, and he does not target equity prices. Remember that from his last nerws conference?


    Certainly with equity prices fueling the wealth effect, preserving retirement plans for the greast unwashed, and saving corporate america in the face of declining sales, there would be no reason for the Fed to be concerned with the stock market.


    Would there?
    14 May 2013, 08:46 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (17772) | Send Message
    He's even mentioned the Russell 2000 climbing as proof that the thing was working, a few years ago.
    14 May 2013, 09:20 AM Reply Like
  • Prmamu
    , contributor
    Comments (29) | Send Message
    It is a fragile market when opinion of one man, that profits from market moves, can change the SP futures by 1/2% .
    14 May 2013, 09:02 AM Reply Like
  • marketwatcher23
    , contributor
    Comments (935) | Send Message
    They paid Tepper well today. He looked like Crazy Eddie.


    These Prices won't last!!! These prices are insane!!!


    Now get in there and buy you sheep so I can finally unload this crap!
    14 May 2013, 09:09 AM Reply Like
  • Water Brothers Financial Co...
    , contributor
    Comments (339) | Send Message
    The best thing about guys like Tepper is they make you realize that the two basic requirements to be a billionaire fund mgr. are 1.) money 2.) sell snake-oil.
    I believe bernanke not only is SO aware of the market but that the fed has actually been buying equities for a long time - I have pretty good data to support this.
    And you have to love these guys like Tepper who drag out Milton Friedman's old formula about interest rates versus equity PE's. If interest rates are 3 % (long) then equities can trade at 33x, if 5% then 20 times etc. So yes they are cheap - if you believe all these "we lost revenue but boy we're making more money cause we're so smart" earnings reports and if you believe these are real interest rates that Friedman was talking about and by the way how great do we think Friedman was anyway, these days.
    Here's what I love - the .1% EXPLOSION in retail sales yesterday , in the great recovery. I am even starting to get calls from touts for the first time in ten years, that's where the new jobs must be, phone bank hires. So Tepper moves futures, the Netflix hedgy yesterday moved it 5% - but it's a fair and fairly valued market. But I'm known as pretty pessimistic and pretty radical - I think Jamie Dimon (good for shareholders bad for America) and Little Ben should be playing bridge with Bernie Madoff and his gangsta pal as a fourth in fed. prison.
    14 May 2013, 09:44 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
    Once again: POMO Tuesday, folks. Tepper is an opportunist.
    14 May 2013, 04:59 PM Reply Like
  • flash9
    , contributor
    Comments (3669) | Send Message
    Man the comments certainly have a bearish tone in a contrarian sense.
    14 May 2013, 09:03 PM Reply Like
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