Friday, September 24, 2010

david tepper


david tepper

The hedge fund, David Tepper appeared on CNBC's Squawk Box this morning. Tepper is the founder of Appaloosa Management 12.4 billion U.S. dollars. The fund manager makes about $ 7 billion in 2009 by buying stocks and bonds of companies in financial crisis. He personally raised more than $ 4 billion, making him the highest paid manager hedge funds this year and the 258th richest person in the world.

Tepper outlined an optimistic theory of populations is very simple, but equally worrying. Tepper told CNBC viewers in their mind they are two different scenarios that can play in the coming months, which should be positive for the stock market. The first is that the economy will improve by itself.

He said, "or the economy will improve by itself over the next three months ... What are the assets to do good? The actions are done well, the bonds will not be so good, that gold. If the economy will pick up over the next three months and that the Fed is entering the Queen Elizabeth. What is she doing right? Everything in the short term, but not Bonds ... So let's see - what I've got two different situations: One of the economy is better by themselves, are better stocks, bonds are worse, gold is probably worse, the other situation, the Federal Reserve comes to money ..

The theory certainly makes sense, but the landscape implications of bringing a number of questions. Essentially, the market is now in the business of the first execution of the Federal Reserve and the Fed is in business to shore up the stock market. This is still ongoing, despite the recession probably ended in June 2009.

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