David Tepper, the 4th highest earning hedge fund manager with a personal net worth of US$11.7 billion (February 2017) warned investors of a 20% stock pullback in September which has played out.
“Federal Reserve is sending the market a message, and it’s not a good one”
DAVID TEPPER
Escalating US-China trade tensions have got David Tepper all riled up
“You probably don’t want to take things too far with China because I can tell you the steps that it will go to and you get to the fourth step, it’s a war – it’s a real war” said David Tepper at the Tepper School of Business. Carnegie Mellon University named the school after Tepper following his $67 million donations to the University.
David Tepper urges move To Cash is the latest advice from the hedge fund billionaire investor
Reading between the lines that imply that David Tepper is not too optimistic about the US-China trade war truce panning out well. So David Tepper urges move To Cash, in other words, he is betting on a new secular bear market cycle emerging in stocks where lower lows and lower highs are the norms.
Moreover, David Tepper’s move out of stocks suggests that the billionaire investors are forecasting the Treasury 10 year yields shooting above 3.25 % in 2019.
“You probably don’t want to take things too far with China because I can tell you the steps that it will go to and you get to the fourth step, it’s a war – it’s a real war”
DAVID TEPPER
David Tepper urges a move to cash is based on a bearish message being sent by the Fed
“Federal Reserve is sending the market a message, and it’s not a good one” said David Tepper on the cable business network CNBC.
“Everyone is tight. Chinese money growth plummeting. ECB cutting the last of QE. And Fed still in tightening mode” – David Tepper
David Tepper urges move for the following reasons:
1. Fed Chair “Powell basically told you the Fed put is dead” said David Tepper.
2. “Everyone is tight. Chinese money growth plummeting. ECB cutting the last of QE. And Fed still in tightening mode” said David Tepper.
3. “The net biggest issuance of Treasuries and worldwide fixed income is coming next year. Something is going to get crowded out. Bonds, stocks etc” David Tepper said.
4. “Oh and there is this trade war question. I think we should be having a fight with China on different issues. But it is not conducive to confidence. Freezing some worldwide activity” said David Tepper.
5. Finally, David Tepper urges a move to cash. “Cash is not so bad”, added David Tepper.
