Known as a strong perma-bull, David Tepper shook the markets with his pessimistic comments at the SALT Conference. While speaking to the who’s who of the financial industry, the hedge fund manager preached caution. Fast forward three weeks later, and Tepper’s major concerns are now alleviated.

David Tepper Appaloosa

Tepper’s concerns have subsided

David Tepper, who manages $20 billion in assets Appaloosa Management, spoke to CNBC today where he calmed the markets with his soothing comments. CNBC’s Kate Kelly reported that ECB’s historic decision to cut rates has satisfied Tepper’s major concerns about the markets. Tepper said that doubts regarding tight monetary policy in China, slow U.S. growth and lackluster recovery in Europe have somewhat subsided over the past few weeks.

Last month when Tepper spoke at Skybridge Capital’s SALT conference in Las Vegas, he visibly shook the market with his bearish comments. Tepper is famous for his “go long, don’t short” theme, that has persisted over the last couple years. Appaloosa Management was the best-performing hedge fund of last year with a brilliant return of +40%. At SALT he took a u-turn and was quoted as saying,

“Don’t be too fricking long right now, there’s times to make money and there’s times not to lose money.”

He said that the current state of the global economy has made him cautious. Commenting specifically on the eurozone, Tepper said that ECB has been slow in taking action and the worrisome deflation in the region makes him nervous.

ECB charges negative interest rate on deposits

The European Central Bank made the historic decision today to charge a negative interest rate on deposits in banks. The -0.1% interest rate will likely force banks to push up lending which will eventually stimulate growth. The central bank also cut the main interest rate to 0.15%, a new low. These unconventional measures by ECB caused European markets to jump and the euro fell against the U.S dollar. However, the ECB is still holding off on starting a U.S-style quantitative easing program and is trying other actions to boost tepid Eurozone growth.

David Tepper video below