In a recent CNBC interview, Appaloosa’s David Tepper said that while stocks are not “really cheap,'” current economic conditions provide a solid backbone for the market.

“Listen,” Tepper argued, “it’s hard to go short when you still have the drugs being given.”

The hedge fund manager emphasized the importance of reduced regulation, a “cornerstone of President Trump’s platform.” On the other hand, he argued, the new administration’s stance on immigration is “dangerous.” Regarding interest rates, Tepper asserted in the interview that the Fed is “way low where they should be,” but believes that rising rates shouldn’t threat businesses or the market as a whole.

Tepper asserted, “There’s nothing to get in the way until potentially inflation starts picking up and people start getting worried about that.”