Tuesday, May 14, 2013

Why David Tepper Is Killing It In This Market


 David Tepper is one of the most successful, highest-paid hedge fund managers in the world.
On CNBC this morning, he revealed that he's still bullish on stocks, and not at all worried about what the Fed is doing. He thinks the stocks are cheap, and helped by monetary easing, but that there's nothing to worry about with regards to the Fed "tapering" of QE.

Basically, it's a big advantage for Tepper that he's a Democrat. What? Here let's explain...
In recent years, a lot of Republicans have become "policy bears", people who are convinced that Fed/government involvement in the economy is sure to end in disaster.  Rick Santelli is the foremost "policy bear" that you regularly see in the media, but as we saw recently at last week's hedge fund conferences, a lot of the big names in the industry like Paul Singer, Stan Druckenmiller, and Kyle Bass are policy bears as well.

Their conservative view of the world has manifested itself, post-crisis, in Fed hate, and a lack of inclination to just ride the great bullish market wave that we've seen since 2009.  Tepper is clearly not afflicted by Policy Bearism at all. The Fed doesn't make him raging mad. He doesn't talk about how the Fed is distorting markets beyond all recognition, and how it will end in disaster. He sees the Fed helping the economy, and he buys stocks, and he doesn't get worried about it.  Later, things will change..

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