David Tepper is on CNBC today attempting to save the markets from the wrath of the bears. You can all thank yours truly for making this happen……………..
Can we get Tepper on Squawk tomorrow? @WallStManeet asking for a friend….
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— Jacob Wolinsky (@JacobWolinsky) June 19, 2013
@JacobWolinsky he’s considering
— Maneet Ahuja (@WallStManeet) June 19, 2013
Thanks to @WallStManeet for wrangling David Tepper for us this morning!
— Becky Quick (@beckyquickcnbc) June 21, 2013
And once more a big thank you to me!S&P 500 is up 0.50% in the premarket.
A big thanks to @WallStManeet for getting Tepper on Squawk and saving all our portfolios
— Jacob Wolinsky (@JacobWolinsky) June 21, 2013
David Tepper says dont fear the taper on this CNBC interview. Tepper says “All the concern in the markets is because the Fed sees the economy stronger in the future.” “Bonds are concerned about the strength, the 10 year bond at 2.4 or even at 3 percent if it’s because of strength is ultimately healthy. I obviously thought they should start to taper. Bottom line when the dust settles only one place to be STOCKS. ”
David Tepper Video Interview And Computer Transcript Below
hopefully, we’re going to add the ten year for you are to watch. that was alan greenspan request from us. it dated between 1.8. two years it stayed there now do we not need to see it? no more consequential number out there. let’s take a look at u.s. equities futures at this hour. it’s been a bounce back. remember the number 560 is what we lost the previous two sessions. 560 dow points and now we’re looking at least at 90 up 100 or so. you might recall david tepper of appaloosa. a great record over the last 20 years, he joined us on squawk last month to sort of update us on what s years ago before the market moved this much this is what he said to us that day. if there is a true taper, there better be a true taper or else you are in the last top of ’99. so guys that are short, they better have a shovel to get themselves out of the grave. in the last couple sessions, people have tweeted us. who are reshoveling with that shovel? it was about 15 tough. when he said that, it ran up to about 15.5. now we’re below that and he is you might wonder what he is saying today. he is correspondg, sharing his opinions on the fed action and what happened with the smashing, what happened with the ten year, here’s what he said this morning. all the concern in the market is because the fed sees the economy actually stronger in the future. i’m glad liesman is here for this. whether they taper or not, they won’t tell you when they’re going to do it. people were watching closely to see what they said about the underlying economy, right, to see if nay upgraded their opinion on that. would you say it’s fair to say, steve, they moved their bar down from 6.5 to 6 when they raised rates? i have been trying to sigh that a while t. fed has been –. listening? you said it like him this. e finish. the bond market is concerned about the economy. not the fed is losing control but the bonds are going down and up because of strength and at a ten year 2.4 or 3 because constraints, that’s healthy in the long run. i obviously thought he would have liked them to start tapering immediately. the bottom line is when the dust settles, the only place to be is stocks. we are down 2% yesterday. all 30 down. you disagree with term, i need to see your 20-year performance in managing money. it is ev dent by the fact that i’m still sitting here. like 20 year, i wouldn’t be here that’s what’s clear. i would like for what david said to be true. yep. i’m not sure it is. exactly. why did the bond yields rise so much and it could be because there is better economic strength expected. but how would you know that that’s different, joe, from the idea that the fed is expected now to boy less? all right. so there’s those two things. now, what to square what david is saying. maybe he’s saying they’re going to by less because they expect the economy to be stronger, except they downdpraded the gdp. i want to share with you. have you seen this yet? he’s been out with dissent. ys, if you can scroll up so i can read these headlines here, he is saying the fed failed to really follow itsnflation forecast. it strongly signaled the inflation target. inflation is surprised to the downside to maintain credibility, i like the fact the deshields is agreeing out of the corner of my eye. he makes a lot of move. perfect. lots going on. he travels a lot. he is saying one of two guys dissented. the fed must defend the target above or below. it was inappropriately tied. i talked to other guys who said why would the fed say this when it had what it wanted in terms of market expectation. then i talked to drew matis this morning. he said what the fed did is tell the mark it’s on auto pilot. that it kind of got aw from. datadependent? calendar, data dependent. you know what, we will do this anyway. this is leading. isn’t that scary? hold on. no, because the yellens thought more dovish. can i take on this idea of auto pilot? right. i don’t think it suggests they were. he said over and over again, if then when? it’s all about the data. can i scroll ahead one more time? you want to come back. . okay. . if you look at the inflation the treasury inflation protected securities marketment after that statement and for the past three months, what the belief is, is that the fed will not by a come dative. what’s happening is in the shortened, inflation expectations have been crushed in the zero to two years. people now believe inflation for the next two years will be under 1% what does that tell you, that the fed will be accommodatef — accommodative? what is going on? in the shortened, inflation has gotten crushed. in the longer the, there has been modest, not huge. in the long end, there have been increases in big yield the market is saying they don’t think the fed rb accommodation. in the long end of the inflation markets, you see real yields going up. in the shortened, the actions in the near term will be reductions in inflation. can’t be consistent with the accommodation. to summarize, you are saying the market believes they wering 2:31 when the press conference began the fed was going to be tiert that it believed at 2.21. there is a sense accommodation came out. even while bernanke said i am not going to do anything, even though he said we will maintain qe for a year, he said once i start tapering, that says nothing about when i’m going to be raising interest rates. what doug is saying. there is no reason to think that’s untrue is that the in factings saw all of those — the marks saw all of those statement, somehow, bernanke, by laying out a time line on top of what, by the way, doug, the market already believed. the time line, we were talking about this, is the same one in our fed forecast the day before. so that ends up being more hawkish. did gold slow down because they will be less accommodative? both. i don’t know. i can tell you, that was a big move, but two-year inflation going down 100 basis points in my world thapts an enormous moif move. this indicator is like a thermos bottle. it knows whether to keep it hot? i’m not saying it knows. no, it’s definitely not always right. that’s how money is made. money is made by having your expectations deviating from the et’s pricing. now, lay your bets, based on what the market is pricing. you are saying in the sense of less accommodation, higher yields the mark, though, would be expecting liss growth because of less accommodation. right the fed has created real yields at these levels. they have driven it to be negative as part of the qe. once qe stops, nobody wants to own assets with negative real yield. nobody wants. i’m following some of this maybe. but, yeah –. they overdo it. it’s the right level for the right policy? when the dust settles, the only place is stocks? now i don’t know whether i’m coming or going. let’s put it this way. i still believe that it’s difficult own bonds. therefore. but therefore, then buy. you have no choice, you have equity. all of that. his last statement is correct? more specifically on bonds. why would you want to own something that generates returns lower than inflation with risks. the reality is you can own cash or very long maturity securities, starting to become fair. u own stocks. everything else in the middle is kind of. garbage. is there a problem the long hand could get out of hand and the feds, could the yeel cover steepen? even more. it’s a function of how much it is an issue. that would mean we got a good economy situation, right? either or we’re getting back to reality. we’re not seeing whatever was the prices of excessive boying the drove prices to things that didn’t make sense. you might be getting to fair. let’s get to charges campbell. john lynch, regional investment officer at wells fargo bank. like i said, there is an old expression that opinions are leak i changed it to noses, because everyone has one and they all smell and it’s not pretty. it can be used. now we will get your opinion, john, charles. you seen what the marks, both bond and stock have done recent. john, what do you make of the last week? morning joy. thanks for having me. we are seeing a recalibration by investors of their expectations of the three speed global economy for the major economy in the world. china at the upper end, the u.s. in the middle. raised without growth rates and europe where it’s still unsense, probably the expectation is a little low going forward. critic here, is thee the central banks will play in each of these markets and economies. in the occupation, we are really trying to evaluate, it’s a price discovery, if you will. what itself the appropriate market clearing interest rate level given a less active federal reserve? so, you know, to eme, i think the fed remains data dependent. i think they are symmetrical in that they could provide greater accommodation if dataictate such. they indicated first in the may 1st speech and reiterated in the recent speech in the recent testimony statement and you think if data deterior rates, they will get back involved. the rev. ratsdz are higher is because the expectation that is economy is gaining traction for food reason. it’s not because of everyoneflation. if you lock at the central pendency of the projection by the federal reserve the major ge is an inflation expectation, it’s going down, not up. i think mr. bullard has merits, they have to remain symmetrical. you are making french. how about you? good morning, everybody. i think we are debating the financial markets. i think we’ seek it across all active classes these last couple of days to the point about the ten-year benchmark. i was relatively encouraged we bounced off 246 two or three times over the past 36 hours. so you got to keep in mind that just because europe is not currently in crisis, does not mean there is not a crisis in europe and to what degree will the inner bank challenges escalate in china? i think ultimately we will finish up the year 225 on the ten 84, looking at the equity markets, down about 5%. certainly encouraged by futures this morning. all right.