Tepper: I'll show you a real bubble


David Tepper shows us what a real bubble looks like, holding up a chart of P/E multiples from 1995-2000 vs. 2008-today. The 95-00 line goes straight up, while the 08-13 line is flattish. The first period was a clear bubble, but today isn't, and in fact deserves a much higher multiple than existed in 2008.

Up about 40% this year, what's Appaloosa looking at for 2014? Tepper says he's recently put on a Treasury (TLT) short, but doesn't expect rates to go a whole lot higher.

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Comments (4)
  • DeepValueLover
    , contributor
    Comments (11220) | Send Message
     
    Tepper is always worth listening to.
    21 Nov 2013, 07:18 PM Reply Like
  • gelstretch
    , contributor
    Comments (3505) | Send Message
     
    Not really a bubble… just portly, and a little overstuffed.
    22 Nov 2013, 12:07 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    Jesus...up 40%. Tepper killin it like usual. What were his big trades this year? I've seen their 13F's, there weren't any spectacularly-performing equities.

     

    Expect another $1B+ paycheck for Tepper this year. This guy is the new Eddie Lampert.
    22 Nov 2013, 12:45 AM Reply Like
  • Cameron Swinehart
    , contributor
    Comments (301) | Send Message
     
    Is anyone questioning why he believes a P/E of 18-20 multiple is reasonable for the S&P? I still don't understand the reasoning.
    22 Nov 2013, 09:30 AM Reply Like
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