Tags: david tepper | cautious | stock market | investors

Billionaire David Tepper 'Pretty Cautious on the Market'

Billionaire David Tepper 'Pretty Cautious on the Market'

By    |   Monday, 17 October 2016 03:10 PM



Hedge fund billionaire David Tepper said he is "pretty cautious" on the stock market.

"Depending on the outcome of the election, the market can move different ways. So, generally speaking, pretty cautious on the market, not outright bearish on the market," he told CNBC.

The founder of Appaloosa Management said the current environment is "difficult" but hedge funds can still make "OK" returns. Tepper said his fund, which has about $19 billion in assets under management, is "pretty light in the stock market and we have a lot of cash."

Tepper said the central bank most likely plans a hike soon because the economy is "at a point where they should raise rates."

"But if you do get some sort of mixed government or something that's near what's going on right now ... then you'll get some relief after this election's over. I think they have to anticipate business investment going up, especially if you have more or less of a status quo economically," Tepper said.

Tepper is far from being alone in his trepidation about the market.

Billionaire investor Wilbur Ross is urging the Federal Reserve to raise rates now so the central bank has some ammunition to fight back when a recession grips America within 18 months. “We at some point, probably within the next 18 months, are likely to go into a recession, especially — frankly — if you have Hillary Clinton elected and she increases taxes. But with or without that, we have a great risk of going into a recession,” Ross told Bloomberg Television.

“The Fed’s toolbox is basically empty. They need to replenish that toolbox in order to have a way to help, if and when we get into this recession that I see in the next 18 or so months,” he said.



“I believe that the dithering over it has created so much market uncertainty — both about interest rates and more importantly about the direction of the economy — that that dithering has done far more damage than 25 basis points would,” he said.



Ross said central bank officials are agonizing too much over such a relatively small move.

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Hedge fund billionaire David Tepper said he is "pretty cautious" on the stock market.
david tepper, cautious, stock market, investors
Monday, 17 October 2016 03:10 PM
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