Billionaire hedge fund manager David Tepper said the coronavirus outbreak has “certainly ruined the environment” that made him bullish on the market.
Tepper told CNBC two weeks ago that he thought the market would keep climbing.
“You have to be careful, because it may be a game changer. So you’ve just got to be cautious,” Tepper told Jim Cramer for TheStreet.
The coronavirus has “certainly ruined the environment” for stocks that was in place a few weeks ago, Tepper told Cramer.
“If you’re a long-term person, you better not be leveraged,” Tepper said.
However, U.S. stocks rallied on Monday, boosted by heavyweight technology shares and on surprise strength in U.S. manufacturing activity, following a sharp selloff last week on concerns about the economic impact from the fast-spreading coronavirus out of China.
“Investors are looking beyond the potential negative impacts of the coronavirus," Michael Arone, chief investment strategist at State Street Global Advisors in Boston, told Reuters.
"Historically, these events have proven to be a buying opportunity for investors, and there could be an element of folks getting comfortable with where we are with the coronavirus moving forward.”
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