Comments From a Feverish Bull Ignites Stocks
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Stocks are higher today, benefiting from the bullish comments of hedge fund titan David Tepper on CNBC this morning. Tepper was the top performing manager in 2009, returning $7.5 billion, or 132 percent, so his comments carry some weight.
In the interview, Tepper explains that in its recent statement the Fed indicated that it wants economic growth, and doesn't care about inflation. Tepper said the trade is easy..."Buy."
He said one of two things is going to happen. Either the economy is going to improve by itself and stocks are going to go higher, with bonds and gold under-performing. The other scenario is that the economy is not going to pick up, which would trigger quantitative easing from the Fed, which would send stocks, gold and bonds higher.
The Fed has a 'put' supporting the market, Tepper explains. "You've got to love a put," Tepper said, "especially when the Fed is issuing it."
Tepper rhetorically asks "What do I do?" answering "I've got to Buy!"
"I can't take the chance of not being a little bit longer now," Tepper said. I'm not going "balls to the walls" but "it's that easy."
Tepper has large stakes in financial stocks Bank of America (NYSE: BAC) and Citigroup (NYSE: C), although he cut his exposure to the banks in the latest quarter. Recently he has been adding to pharmaceutical stocks like Merck (NYSE: MRK) and Pfizer (NYSE: PFE).
Below is the must watch video:
In the interview, Tepper explains that in its recent statement the Fed indicated that it wants economic growth, and doesn't care about inflation. Tepper said the trade is easy..."Buy."
He said one of two things is going to happen. Either the economy is going to improve by itself and stocks are going to go higher, with bonds and gold under-performing. The other scenario is that the economy is not going to pick up, which would trigger quantitative easing from the Fed, which would send stocks, gold and bonds higher.
The Fed has a 'put' supporting the market, Tepper explains. "You've got to love a put," Tepper said, "especially when the Fed is issuing it."
Tepper rhetorically asks "What do I do?" answering "I've got to Buy!"
"I can't take the chance of not being a little bit longer now," Tepper said. I'm not going "balls to the walls" but "it's that easy."
Tepper has large stakes in financial stocks Bank of America (NYSE: BAC) and Citigroup (NYSE: C), although he cut his exposure to the banks in the latest quarter. Recently he has been adding to pharmaceutical stocks like Merck (NYSE: MRK) and Pfizer (NYSE: PFE).
Below is the must watch video:
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