David Tepper, the founder of Appaloosa Management, was on CNBC discussing his macro outlook this morning. It’s a good interview and I would recommend taking the time to digest his comments since he’s one of the few hedge fund guys I think we can take very seriously. I have to admit though, I am practically stunned by how unabashedly bullish he is….
Here’s a brief round-up of Tepper’s views:
- On the economy – the economy is not bad right now.
- The unemployment rate won’t decline to 6.5% until 2015.
- There is a global central bank “put” in place.
- The ECB can lower interest rates in Europe whenever they want.
- Credit markets aren’t in bubble territories, but they’re “rich”.
- You can’t short bad credit with the Fed implementing such massive stimulus.
- The stock market is cheap.
- There is very little downside to the equity market.
- There is significant upside to the equity market.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.