A Flaw In The Tepper Analysis
Jeff Miller | May 15, 2013 12:32AM ET
When David Tepper speaks, the market listens.
In Autumn, 2010, Tepper, the highly successful billionaire hedge fund manager, These effects are economically meaningful."
There is also the flip side.
- The ending of QE is not as scary as portrayed by most "pop economist" pundits.
- Since the initial impact of QE was an "overbid" the winding down will be as well.
David Tepper is right on all of the key points.
- He is accurate on Fed policy.
- He is accurate on overall market valuation – the equity risk premium.
- He is accurate on the right posture for most investors.
Why do I disagree? I am not trying to pick nits. I mean to analyze what is actually happening, explaining why investors should not fixate on Fed policy.
Tepper is meeting the critics on their own terms – discussing net debt, even if that is the wrong measure. He is catering to the popular mistaken belief. I disagree with his analysis, but not the investment implication.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.