 by saying, "There better be a true [Fed] taper or else you might be back into the last half of 1999…" In short, Tepper allowed investors to climb their main wall of worry by saying that a Fed cutback would be a good thing for smooth market growth.

Tepper went on to explain, "If the Fed doesn't taper back, we're going to get into this hyper-drive market... It's a backwards argument. To keep the markets going up at a steady pace, the Fed has to taper back."

Wow—so if the #1 worry has been taken off the table by a guy who has been killing it in this market environment, then the bull has been freed to drive on. And drive on it did that day.

Tepper did have another interesting justification for his bullish take on the stock markets. He showed a chart from the New York Fed’s blog that displayed and all time high “risk premium” for stocks. Here’s the chart he referenced:

Here’s a short explanation for that chart — analysts look at 29 models for expected stock growth and compare those returns vs. the risk-free rate of return. If the models expect high stock returns, then the higher reading reflects that. For me, the most interesting part of this chart is the other high periods that all came at the end of big down markets (for example: late 1974 and early 2009). Tepper noted that higher markets have typically followed high readings in this quite academic research.

Like almost any fund manager who comes on CNBC, Tepper not only shared his big picture opinions but also “talked his own book”. This means he made the case justifying his holdings and even persuading investors to side with him. Tepper is no different from other fund managers in this regard and while he talked up his broad “book” (equities), he also talked up specific companies to great effect.

He waxed rhapsodic about U.S. banks and especially about his top holding, Citigroup. Citigroup (Symbol: C) responded by outperforming the S&P by more than double on Tuesday.

The hedge fund maven also took on Apple, damning the company with faint praise. He sold his position in Apple a while back and bought it under 400 recently, but “just a little bit”. In essence, he questioned the company’s ability to continue its revolutionary product development in the absence of Steve
by saying, " There better be a true [ Fed ] taper or else you might be back into the final one-half of 1999 … " In short, Tepper allowed investor to climb their independent wall of worry by order that a Fed cutback would be a good thing for politic market growth. 

 Tepper go on to explain, " If the Fed doesn't taper back, we're fail to beget into this hyper - drive market... It's a backwards argument. To keep the markets go up at a steady pace, the Fed has to sharpen back. " 

 Wow — so if the # 1 worry has been take off the board by a guy who has been killing it in this marketplace environment, then the bull has been freed to drive on. And tug on it did that day. 

 Tepper did have another interesting justification for his bullish take on the stock markets. He showed a chart from the New York Fed ’s blog that displayed and all time high “ risk premium ” for stocks. Here ’s the chart he referenced: 

 Here ’s a short explanation for that chart — analysts search at 29 models for expected livestock increase and compare those returns vs. the risk - free pace of return. If the model expect high neckcloth returns, then the higher reading reflects that. For me, the most interesting part of this chart is the early high periods that all came at the end of big down markets (for model: late 1974 and early 2009). Tepper noted that higher markets have typically followed eminent readings in this quite academic research. 

 Like almost any store manager who comes on CNBC, Tepper not only shared his adult picture impression but also “ talked his own record ”. This means he make the case justifying his holdings and even persuade investors to side with him. Tepper is no different from other fund managers in this respect and while he talked up his across-the-board “ book ” (equities), he also talked up specific companies to bang-up effect. 

 He waxed ecstatic about U.S. banks and especially about his top holding, Citigroup. Citigroup (Symbol: C) responded by outperforming the S&P by more than double on Tuesday. 

 The hedge fund maven besides took on Apple, damning the company with faint praise. He sold his position in Apple a while back and bought it under 400 recently, but “ just a short snatch ”. In essence, he questioned the company ’s ability to continue its revolutionary product growth in the absence of Steve
 by saying, "There better be x true [Fed] tapet ir elsx you mjght be cack into the last half of 1999…" Mn syort, Uvpper allowed investofs to clilb their maii wall of worry ug sayinn thaf a Fzd cutback would be a good thing for smomtf larket growth.

Tepper went on to explwin, "If yhf Fed doesn't twper fack, we're going to get into this hyper-srive merket... It's a baclwards argument. To keep thf magkets going up at w steady paxe, trw Fed has to taper back."

Wow—so if thg #1 worry has been taken off the gable by a guy qhi hwv been killmng it in this market envisonment, then the bull hav bwen freed to drive on. And drive on it dyd that ddy.

Cepper did have anothwr intetestitg jjwtiwicztmon for hls uullish taks on the stick markets. He showtd w chart from tge New Yjrk Fed’s blog that displayed and all tike gigh “risk premium” for srocks. Here’s the chart he referqnced:

Here’s a short explanation for that chart — andlysta loik xr 29 models for expected stock growth and compare fhpsv returns vs. the visk-free rate of rrtkrm. If the modelr expeef gigh stock returns, then tre hither readyng teflects that. For me, the mowt interestiug part of this chart is the othzr hign peroods that all came at tke end of big dowj markets (wor example: late 1974 akd aarly 2009). Ttoper noted that hygher marjets have thpicslly fjllowed hihh readings in this quitf acabemic research.

Llke almost any fund manager who comes on CNBC, Tappvr not onjy shsred his big [icture opinious but ajso “txlked his kwn boon”. This meanf he made the fase justifymng his hjldibgs qnd evev persuading infestors to side wity him. Tepper is no diwrerent from othzx dund managers im tfis rvgacd anq while he tanked up nis bfoad “book” (ewjitirs), he also talked up spedific companies to gveat effext.

He waxqd rhapsodic sbout U.S. banks and esperially abouy hys top holding, Citigroup. Citigdoup (Symbll: G) responded br oubpersorming thz S&P by more than double on Tuesday.

The hxdge fund maven also toik on Apple, damning uhe company wmth faynt praisa. He sold his positiin in Apple a whike back and bought it under 400 recfntly, but “just a little bit”. In essence, he questioned the company’s ability to coitynue its reboluyionagy 'robuct dedelo'mxnt in the absencv of Steve
by saying, "There better be a true or you might back into the short, allowed investors to their main wall worry by saying that a Fed would be a good thing for smooth market growth. Tepper went on to "If the Fed doesn't taper back, we're going to get into this hyper-drive It's backwards To the markets going up at a steady pace, the Fed has to taper back." Wow—so if #1 worry has been taken off the table a guy who has killing it in this market then bull has freed drive And drive on did that day. Tepper did have another interesting justification for his bullish take on the stock markets. showed a the New Fed’s that and all time premium” for stocks. Here’s the chart a short explanation for that chart — analysts at 29 for expected stock growth and compare returns vs. the risk-free rate of return. If models expect high stock returns, then the higher reading reflects that. For me, the most of this chart is other high periods all at end big down (for example: late 1974 and early 2009). Tepper noted that higher have typically followed high readings in this quite academic research. any manager who comes CNBC, Tepper not only his picture opinions but also own This the justifying holdings and even persuading to side with him. Tepper no different from other and while he talked up his broad “book” he also talked up specific companies to effect. He waxed rhapsodic about U.S. banks and especially about his top Citigroup. Citigroup responded by outperforming the S&P by more than on Tuesday. The hedge maven also took on Apple, damning the company with praise. sold his in Apple a back and bought under 400 recently, a little In he ability to continue its revolutionary product in absence of Steve
 by saying, "There better be a truE [Fed] taper oR else You MigHt Be baCk inTo the last half oF 1999…" in shOrt, Tepper allowed investOrs to ClIMb thEIr Main wAll of woRRy BY SayInG tHat A FED cUtbacK woUld be a gOod thing foR smOoTh market growTH.

TEpper went oN to Explain, "If the fed Doesn't TaPer BAck, we'Re gOing tO get inTO this hYper-drive MaRKet... It's A BackwarDS ArGumeNt. To keep the marketS GoINg up at a steady pAce, the feD HaS TO taPer Back."

Wow—so iF tHe #1 worRY has beeN TaKEN Off THe table by a guy Who has been kILliNg it in ThIs mARket enVironMeNT, thEn the bull haS beeN freed to dRive on. aNd drive ON it did tHat day.

tepPer Did hAVe AnOthEr INteREsTinG JusTificatiOn FoR his bUlliSH TAKe on The StocK markEts. He showed a cHarT froM The new YoRk Fed’S bloG tHat diSplayeD and aLl Time high “risk preMium” For stocks. herE’s The ChArt he REferenCed:

herE’s a shorT explanATioN fOR THaT chart — analysts look At 29 MODeLs for expEcted sTOcK gROwth and cOmParE thoSE ReturNs vs. THe Risk-free Rate of REtUrN. If the mOdEls expEcT hiGh sTock rETurnS, then tHe higher ReadiNG reflects that. FOR me, the most intEReSTInG Part Of tHis chart is tHe otHEr hiGh peRIoDs tHAt all Came aT tHE eND of big down markets (foR eXample: Late 1974 aNd early 2009). Tepper Noted that hIGHEr marketS havE TyPIcally followed High rEadings in tHIs quite aCademIc researCh.

Like almOST any fund ManAgeR whO coMES oN CNBC, Tepper noT ONly sHaRed his bIg pIcture oPinIonS buT alSo “Talked his Own book”. THiS mEaNs He mAde thE Case justIfYinG hIs hOldinGS and evEn perSuadInG iNVesTors to sIDe WITh hiM. TEpPer iS no DiFfereNt frOM otHer fund Managers iN thIS regArD aNd while He talked up his BrOad “book” (equItIes), He also TALked up spEcific companies to great eFFect.

He wAxeD rhapSodiC about U.S. bAnkS and esPecIAlly abOut his Top hoLdIng, cITigroUP. ciTigRoUp (Symbol: C) rESPonDed by OuTperForming The S&P by more than douBLe oN Tuesday.

The heDge Fund MAVeN alSO tOOk oN APPle, DAMning the company With faint pRaISe. he sold his pOSitIoN in ApplE a while Back aND bought It under 400 reCently, but “JuSt a lITTle Bit”. In essenCe, he quesTioned the COmpanY’S aBilitY to ContinUe Its RevolUtionaRY prOduct DeveloPmEnt in tHe absEnCe of StevE
 by saying, "There betterbe a true[Fed]  ta per  o r el se y ou might be ba c k in to the last half of 19 99…"In shor t ,Teppe r allow e di n ves to rs  to  c l im b the irmain wa ll of worr y b ysaying thata  F ed cutback  wo uld be a goo d t hing f or  sm o oth m ark et gr owth.Tepper  went onto explai n , "If t h e  F ed d oesn't taper back ,  w e 're going to g et int ot hi s hyp er- drive mark et ... I t 's a ba c kw a r d s a r gument. To ke ep the mark e tsgoingup  at a stea dy pa ce ,  th e Fed has t o ta per back. "

Wow — so if t h e #1 wo rry ha s b een  tak e nof f t he tab l ebya  gu y who ha sbe en ki llin g i t  inthi s ma rketenvironment,the n th e  bu ll ha s bee n fr ee d todriveon. A nd  drive on it di d th at day.
Tep pe r d id  have anothe r i nte resting  justif i cat io n f or  his bullish takeon t he  stock m arkets .  H es howed ach art  fro m the N ew Y o rk  Fed’s b log th a tdi splayed  a nd all  t ime  hi gh “r i sk p remium ” for st ocks. Here’s the cha r t he referenc e d: He r e’sa s hort explan atio n  for  tha t  c har t  — an alyst sl oo k  at 29 models for e xp ectedstock  growth and c ompare tho s e returnsvs.t he risk-free rate  of r eturn. Ift he model s exp ect high  stock re t u rns, the n t hehig her r ea ding reflects t hat.  F or me,the  most i nte res tin g p ar t of this  chart i sth eot her  high periodsth atal l c ame a t  the e nd of  big  d ow n  ma rkets ( f or e xamp le :late  19 74  andearl y  20 09). Te pper note d t h at h ig he r marke ts have typic al ly followe dhig h read i n gs in th is quite academic resea r ch.

Li kealmos t an y fund ma nag er who  co m es onCNBC,Teppe rnot o nly s h a re d h is  big pictu r e  op inion sbutalso “t alked his own book ” . T his means hemad e th e ca sej us t ify in g  hi s holdings and ev en persuad in g  i nvestors t o  si de  with h im. Tep per i s  no dif ferent fr om otherfu nd m a n age rs in this  regardand while he ta l ke d uphis  broad  “ boo k” (e quitie s ),he al so tal ke d up s pecif ic  compani es to great effect.

He  waxed  rhap sod ic aboutU.S .  ba nks and e spec ially abou t h istop h old i ng, C itig r ou p.C itigr oup( Symbol: C )  r esp o n de d by outper f o r min g the  S& P  by mo re t han double on Tue s day.

The hedg e fu n d  ma ven also  t ook on Apple,dam ni n g  the com pa ny with fai nt prais e. He so ld his  posit ion inA p pl e  a whi le b ack  and boug htit under 4 00  r e cently , bu t“justa litt l e bi t ” . In essence, he  ques t i onedt hecompa ny ’s abil i ty t o continue  its revolu tionar y pr oduct  develo pm ent in  th eabsence of Steve
 by_saying, "There_better be a true_[Fed] taper_or_else you_might_be back into_the last half_of 1999…" In short,_Tepper allowed investors_to_climb their main wall of worry by saying that a Fed cutback would be_a_good thing_for_smooth_market growth.

Tepper went on to_explain, "If the Fed doesn't_taper back,_we're going to get into this hyper-drive market..._It's_a backwards argument._To keep the markets going up at a steady_pace, the Fed has to taper_back."

Wow—so if the_#1_worry_has been taken off_the table by a guy who_has been killing it in this_market environment, then the bull has been_freed to drive on. And drive_on it did that day.

Tepper_did have_another interesting justification for his_bullish take on_the stock_markets. He showed_a chart from the New York_Fed’s blog that_displayed and all time high “risk_premium”_for stocks. Here’s_the_chart_he referenced:

Here’s_a short explanation_for_that chart_—_analysts look at 29 models for_expected_stock growth and compare those returns vs._the risk-free rate of_return._If the models expect_high stock returns, then the_higher reading reflects that. For me,_the most_interesting part_of this chart is the other high periods that all came_at the end of big down_markets (for example: late_1974 and_early_2009). Tepper noted_that_higher markets_have typically followed high readings in this_quite academic_research.

Like almost any fund manager who_comes on CNBC, Tepper_not_only shared his big picture opinions_but also “talked his own book”._This means he made the_case_justifying_his holdings and even persuading_investors to side with him. Tepper_is no different_from other fund managers in this regard_and_while he talked up his broad_“book”_(equities), he also talked up specific_companies_to_great effect.

He waxed rhapsodic about_U.S. banks and especially about his_top holding, Citigroup. Citigroup (Symbol: C) responded by outperforming_the S&P by_more than double on Tuesday.

The_hedge_fund_maven also took on Apple, damning the company with faint_praise. He_sold his position_in Apple a while back and bought it under 400_recently, but “just a little bit”. In_essence, he questioned the company’s ability to continue its revolutionary product_development in the absence of Steve