Billionaire investor David Tepper would 'lean short' on stock market because central banks are saying 'what they’re going to do'

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You should believe the Fed and other central banks when they say they’re going to keep raising rates and shrinking their balance sheets, said David Tepper, one of the top-performing hedge-fund managers of all time.

“‘I’m leaning short on the equity markets right now because I think the upside/downside just doesn’t make sense to me when I have so many … central banks telling me what they’re going to do …’”

— David Tepper, founder, Appaloosa Management That’s David Tepper, one of the top-performing hedge-fund managers of all time, offering up a simple proposition: When the Fed and other central banks say they’re going to keep raising rates and shrinking their balance sheets, you should believe them. In a CNBC interview, Tepper, who bought the NFL’s Carolina Panthers in 2018, said investors don’t seem to be taking central bankers’ messages fully on board.

“When the Fed says they’re going to do something, I tend to believe them,” said Tepper, whose remarks are often described as market-moving. “The market says they’re not going to carry forward. I believed the Fed before and I believe them now.” Fed Chair Jerome Powell was clear on Dec. 15 when he indicated rates would peak above 5%, Tepper said, but he noted that the central banker’s “teddy bear” demeanor may have blunted the message. The same message was delivered in a more forceful fashion the next day by European Central Bank President Christine Lagarde, who warned that the central bank was likely to deliver another half-point rate hike at its next meeting and perhaps at the two meetings after that as well, Tepper said.

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wow i believe this

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David Tepper is 'leaning short' on the stock market into 2023 because of global rate tighteningHedge fund manager David Tepper is listening to what central banks are saying Dude has more important things to worry about. Like hiring a head coach and finding a franchise QB. Way more important than this other stuff. Will he come on TV before he closes his shorts? He is hoping to manipulate the market while volumes are low and his opinion might have an impact.
Source: CNBC - 🏆 12. / 72 Read more »