David Tepper is bullish on stocks and believes that rising returns will stabilize

David Tepper, founder of Appaloosa Management, whose comments are known to drive markets, said it was very difficult to be a bear on the stock right now and said the Treasurys sell-off, which raised interest rates, was probably over.

The main market risk has been eliminated, Tepper said, adding that interest rates need to be more stable in the short term.

Bond yields have jumped sharply in recent weeks amid higher inflation expectations that have put pressure on risky assets. The ten-year treasury yield rose from 1.09% at the end of January to over 1.60% on Monday. Rapid progress has hit technology stocks particularly hard, as these companies have relied on easy loans for growth.

Tepper believes that Japan, which has been a net seller of government securities for years, could start buying US government bonds again after rising yields. The potential purchase could help stabilize the bond market, Tepper said.

“It takes a lot of risk off the table and it’s very difficult to be bearish,” Tepper said.

Another upward catalyst for equities in the near future is the coronavirus tax stimulus package that has just been approved by the Senate, Tepper said.

The hedge fund manager also said that bellwether shares such as Amazon are starting to look attractive after the downturn.

A year ago, before stocks really began to fall due to the pandemic, Tepper warned that the virus could change the game in the markets.

 Junior Trader Mert Mustafa

Varchev Absolute Trader

борсова платформа

  • Търгувай над 3000 финансови инструмента: Crypto, Форекс, Акции, Индекси, Суровини, ETF-и
  • Използвай платформа с директно изпращане ордерите на борсите
  • Best Trading Platform - "Online Personal Wealth Awards" EU награждава Varchev Absolute Trader
  • Cloud base платформа - твоят трейдинг сетъп на всяко устройство
  • Traders Talk - чуй какво движи пазарите в реално време
  • Market Sentiment - търгувай с настроенията на инвестиционите банки
  • Top movers - най-горещите трейдове във всеки един момент
  • Stocks scanner - филтрирай най-подходящите за твоя трейдинг стил пазарни инструменти
  • Heat map - Търгувай в посоката на големите играчи

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance
chat with dealer