Tepper: Bullish Argument Is “Overwhelming”

Hedge fund guru David Tepper of Appaloosa Management says he sees an “overwhelming” case for stocks right now. “I’m definitely bullish,” Tepper tells CNBC “It’s so overwhelming”. He cites the improving economy and housing market and easing policies by central banks around the world as reasons. He also says that fears about the Federal Reserve “tapering” its easing policies are misguided. He says that the federal deficit is “shrinking massively”, and over the next six months will be only $100 billion. Meanwhile, the Fed will be buying about $500 billion in assets over that period as part of its easing plans. So even if the easing is designed to finance the deficit, $400 billion will still be out there, needing to find a home. Some will go to the economy, but a lot will likely go to stocks, Tepper contends. In fact, he says some tapering will be needed to keep the market from going into “hyper-drive”.

 

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