Billionaire hedge fund president David Tepper thinks there are “cheap pockets” in an otherwise pricey market.
Tepper, the founder and president of Appaloosa Management, says in a new interview with CNBC that he’s feeling “constructive” about the Federal Reserve’s rate cut but also feels “miserable” because of the current stock prices.
“If we do get rates lower, some of the housing-related stocks are maybe cheap, but they’re not showing up in earnings right now because they’ve had tough quarters and they’re still having tough quarters, so depending on where the 10 Year [Treasury] goes, and where mortgage rates go, they could be interesting. But then again, if it just continues in the same way, they may not be interesting.”
Tepper, who owns the Carolina Panthers football franchise, tells CNBC that another Federal Reserve rate cut or two won’t impact the economy negatively. The billionaire says additional cuts after that, however, could present problems.
“We’re still in a little restrictive territory with a little bit too high inflation, even without the tariff-induced inflation. So they should be a little bit restrictive. Beyond that, then you’re really risking a lot of things. A weaker dollar, more inflation, and those sort of things.”
The Federal Open Market Committee (FOMC) cut the federal funds rate by 25 basis points this week.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
