David Tepper, president & founder of Appaloosa Management, says the downside is relatively small while the potential upside is large for the US stock markets.
Airtime: Fri. Sept. 24 2010 | 5:15 AM ET
Runtime: 17 minutes
Traders need economy to get going again.
No big deal if FED has to do QE for awhile.
Does not see a Japanese type scenario. Low rates save people on mortgages so they have more to spend on "stuff."
"We are not THAT big in financials" About 10% of the portfolio.
"I think the market will go up someway in the near term."
Long-term. Multiple for the S&P500 between 12 and 14. Currently the multiple is low.
Either the economy will get better or it won't then the FED will come in and make it better.
Becky Quick: "Does it make you nervous to be looking right and left and nobody else is following (what you are doing in the market such as buying in March 2009)"
Tepper: "I don't give a shit Sue."
Tepper thinks the market can go lower, perhaps 1,100. He will increase equities to 90 to 100% if it gets down to 1,000.
Doesn't worry about "backward" looking data. Likes to concentrate on where we are going. Thinks the economy is improving slowly and the question is when it will accelerate.
Comments on Carried Interest Tax: "I don't have a long run problem with carried interest tax." He said he would "adjust" if taxed more, would not leave the country, change what he is doing, etc.... but he said he needs time to make plans so he hopes they eventually get around to settling the issue.
$12.4B under management