He’s ba-ack!The Appaloosa managers gained notoriety and fame for starting the “David Tepper Rally” late last year when he said he was bullish on stocks for one of two reasons: Either the economy would improve, or Bernanke would pump more.
Now he’s thought to be more cautious, per a New York Post report earlier this week.
We’ll be covering his (potentially) market moving rally.
- He’s starting off taking about philanthropy… the food bank. They’re teasing whatever he might say that could move markets.
- They’re really dragging this out. So far just talking about The Food Bank of New Jersey, and the commitments Teppr got from JPM and PNC.
- Regarding the food bank, Tepper says “I’m obviously an optimist” but things aren’t going to get better anytime soon in terms of the need for philanthropy.
- Surprise! The New York Post took his comments out of context. He’s not that “Cautious”
- It wasn’t just QE2 that made him bullish last September. Other factors like the election he talked about. Though QE2 was important. And bond yields are lower everywhere along the curve than they would have been sans-QE2.
- Employment won’t get back to where it was. Maybe we’re talking 10, 15, or 20 years to get to the really good days again.
- He hasn’t lightened up his exposure to markets. Forward PE are still too low based on where Treasuries are going.
- Tepper is baffled by lack of focus on liquidity by European leaders.
- Tepper owns shares of Banco Santander.
- He’s kind of bearish on bonds and gold.
- There is a bit more downside than there was back in September, but generally this country is good.
- Why is he long Dan Foods? Soy milk, almond milk, and some “crown jewell” investments like that.
- Bottom line: He’s still as long as he ever was, but a little more cautious thanks to Europe and China.