In September, star hedge-fund manager David Tepper said "everything" will rise in the U.S. stock market. Indeed the Standard & Poor’s 500 Index has gained 12 percent since then. And the head of Appaloosa Management remains bullish now, though he sees some speed bumps along the way.
"So much uncertainty has been alleviated. The economy is so much better now," Tepper tells CNBC. "This country looks good. This is not my concern."
To be sure, it’s not all smooth sailing, he says.
"It's not a free ride in the market," Tepper says. "You've still got to worry about Europe. You've got to worry about China a little bit. We are at a higher level, but pretty darn good. So you can't be too negative, but you can't be un-cautious."
Tepper recommends technology stocks, particularly semiconductors and equipment companies, specifically citing Micron Tech. He also likes Dean Foods. Oil and other industrial commodities will rise on strong global growth, he says.
Others are bullish on U.S. stocks too. “The strong earnings season signals that the economic recovery is sustainable,” Michael Mullaney, a fund manager at Fiduciary Trust, tells Bloomberg.
“Instead of focusing on earnings, we’re looking at sales growth because companies have cut expenses to the bone. There’s good sales momentum. In addition, we’ve been getting positive surprises about the economy. That all bodes well for the stock market.”
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