S&P500 –0.71% As time runs short, talks broke down in Congress on the Senate debt ceiling deal as the House GOP tried to come up with another deal.
Tepper: "if inflation goes high, (Fed) will stop what they are doing"
Tepper: "inflation not coming back any time soon"
Tepper LT bullish as long as DC doesn’t blow up..he’s more concerned about DC than I thought he would be which is containing his bullishness
Tepper: "(taper) when they (Fed) sees employment picking up"
Tepper: "If you are not invested and this thing goes..lag behind..makes things difficult"
Tepper: "(market) is high if D.C. screws it up"
Tepper: "(if) we get over this nonsense in D.C… 18-20Xs at some point vs. 14Xs today"
Tepper: "4% interest rate..growth 2.75%..higher (market) multiple 18-20Xs"
Tepper: "(DC) making it really difficult to invest"
Tepper: "not a messy exit yet..hopefully economy gets better.. "
Tepper: "if you lose your reputation, hard to get it back"
Tepper: "If we default..rates go up 50-100bps..everybody’s mortgage more expensive"
Tepper: "If (Ted) Cruz does something incredibly stupid? If House doesn’t pass this thing? Incredibly bad"
Tepper: "(taper) not now..not next 3-4 months..March? June?"
Tepper: "on other hand QE..market will go up..not 1999 (due to govt)"
Tepper: "not tapering for long time now" "govt still shutdown..things will obviously slow down" "meantime little tough for mkts to fly up"
Leon Cooperman: What would make him negative on the market? 1) 10-15% quick rise in the market, 3rd exuberant phase 2) view of recession..emerging 3) strong economic growth of 3-4%, Fed would taper then
Leon Cooperman: $9.5B AUM. 95 positions..likes S AIG KFN QCOM SD
Leon Cooperman: lopsided policy, rich get richer. We need good fiscal policy, create jobs, get the machine working
Leon Cooperman: Bernanke created environment of 0% interest rates that destroyed the savers, pushed up stock market
Leon Cooperman: no real fiscal policy b/c people in Washington do that not get along..entire burden of severe recession fallen on Bernanke
Leon Cooperman: I am not overly optimistic..I respect Stan Druckenmiller (thesis)..theft from future generations
Leon Cooperman: I feel we are moving on a path where we all have a right to receive
Leon Cooperman: this country became great because all of us had the ability and the right to achieve
Leon Cooperman: individuals. pension plans are less than 50% equities vs. low 60s in past. neutral/plus for the market
Leon Cooperman: bonds are over-valued. process of investors moving out to risk curve isn’t complete
Leon Cooperman: 5-6% profit growth. 6-8% market growth next year. Fed created environment no alternative to stocks
Leon Cooperman: 1st phase market bottoms fiscal/monetary policy 2008-2009 2nd phase 4-5 years rising economic activity 3rd phase silly phase
Leon Cooperman: "market is fairly valued" 15-16Xs $109 earnings = 1650-1750 range. 1710 now
Leon Cooperman calls $PBPB and $TSLA valuations silly – CNBC