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David Tepper is “not as bullish” on the short term

By NexChange
Hedge Funds

David Tepper, arguably one of the most successful (and volatile) hedge fund managers currently in action, recently told CNBC that he’s “not as bullish” as he could be – a terrible sign for the markets since he thinks being a bear is the work of Satan.

In an interview with CNBC’s “Squawk Box,” the always-optimistic Tepper said that he has “problems with earnings growth [and] problems with multiples,” alluding to the high expectations currently embedded in the market, and added that you should “really make sure that you have some cash” if you invest in it because he sees a 10% to 20% correction on the horizon.

As for Appaloosa, it’s on defense mode right now: “we have some longs and shorts and we're hedged in, but we don't have a huge equity book right now.”

He also has issues with China, saying that they “just keep making policy mistake, after policy mistake, after policy mistake over there,” adding that while he knows there’s a learning curve in becoming a market-based economy, doing it in real time is “kind of bad when they're a $10 trillion or $11 trillion economy and they influence more than a third of the world's economy.”

He’s bullish on the long term though, stating further that if the market fell 20% or more, he’d be a buyer.
Photo: Sam valadi

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