- 2 hours ago ... Hedge-fund billionaire David Tepper joins Warren Buffett on the list of high- profile investors who are bullish on equities. Tepper told CNBC on ...
- 3 hours ago ... Hedge-fund billionaire David Tepper joins Warren Buffett on the list of high- profile investors who are bullish on equities. Tepper told CNBC on ...
- 3 hours ago ... Hedge-fund billionaire David Tepper joins Warren Buffett on the list of high- profile investors who are bullish on equities. Tepper told CNBC on ...
- May 17, 2016 ... The start of the week saw a flurry of 13F filings by fund managers, the most- reported of which contained news of Berkshire Hathaway's $1bn ...
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00:21:51
Tepper, Buffett join bullish chorus betting on unrelenting stock-market climb
Tepper links simultaneous buying in stocks and bonds to central
banks, suggesting global monetary policy remains relatively loose
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Tepper’s upbeat stance comes despite a record run for the Dow Jones Industrial Average DJIA, +0.08% the S&P 500 index SPX, +0.10% and the Nasdaq Composite Index SPX, +0.10% that has taken the benchmarks to dizzying heights in relatively recent trade. Government bonds, notably the 10-year Treasury note TMUBMUSD10Y, -0.41% were also drawing bids, lowering yields as prices rose.
That creates an atypical environment in which stocks and bonds are both being bought. Investors tend to buy stocks in an atmosphere of rising risk appetite and they often purchase bonds when fear takes hold, driving buyers to the perceived safety of havens like government-backed debt.
Read: How to make sense of the conflicting signals stocks and bonds are sending investors
His remarks follow similarly sanguine comments from Warren Buffett, who runs Berkshire Hathaway Inc. BRK.A, +0.30% BRK.B, +0.24% and declared in a Monday interview on CNBC, the stock market “not in a bubble territory.”
“If rates were to spike, however, then the stock market would be more expensive, Buffett said.
Market participants seem to be more comfortable with the brisk pace of records that stocks have managed to achieve since President Donald Trump emerged victorious in the November election. His promises of business friendly policies, including tax reform, and fiscal stimulus like infrastructure spending have been the backbone of the market’s recent rise.
A recent article in The Wall Street Journal makes the argument that stocks are frothy but not in a bubble, but things could come tumbling down if Trump fails to deliver on his promises to Wall Street. The president’s speech in front a joint session of Congress on Tuesday may offer more details around his plans, which have been light thus far.
Read: How the stock market has reacted to State of the Union speeches
Tepper, who ranks No. 11 on Forbes’s highest net-worth list, runs hedge fund Appaloosa Management. He increased his bets on pharmaceutical companies including Pfizer Inc. PFE, +0.06% and Allergan PLC. AGN, +0.36% in the fourth quarter, while scaling back his exposure to highflying Apple Inc. AAPL, +0.20% according to recent public filings that offer a limited peek at hedge-fund holdings on a quarterly basis.
Both Tepper and Buffett are considered among Wall Street’s most respected investors.
