If I was a long/short guy, I'd be worried, Tepper tells Bloomberg TV. Growth is good, inflation is low, rates are low ... "We're going to get 20% (in the markets) next year ... I"m worried by long/short friends are going to lose their jobs." Can markets correct 5-10% amid the taper? Of course.
Of his J.C. Penney (JCP) stake, he's pleased with the big move higher over the past month, but it's strictly a trade on a stock that had gone down too far too fast. He remains long Citigroup (C) and calls it a $70 stock.
Talking a bit more about his Treasury call, he says he's short even though he considers it an impossibility for the 10-year Treasury to get over 3.5%-3.75%. "I'd bet anything on that."
The 10-year/2-year Treasury spread is at 251 basis points, within shouting distance of the record 292 basis points. To believe the 10-year Treasury yield can rise another 100 bps (while the Fed holds the short end down) is to believe an existing record will be smashed.
Earlier: Tepper shows what a real bubble looks like