David Tepper urges market to trust Fed, says he’s ‘short selling’ stocks By

© Reuters. David Tepper urges market to trust the Fed, says he’s ‘short selling’ stocks

By Senad Karaahmetovic

David Tepper, founder and chairman of hedge fund Appaloosa Management, is bearish on the US stock market as the central bank continues to tighten policy.

In an interview with CNBC, the legendary billionaire said he was “shorting the stock market”. He also said that he would sell bonds.

“For me, an up/down trend doesn’t make sense when I have so much… the central bank tells me what they’re going to do,” said Tepper.

He added that he has a small position in the stock market and urged investors to trust the Fed as they talk about further tightening in 2023.

“We will have more tightening.”

“Sometimes they tell you what they’re going to do and you have to believe them,” added Tepper.

Last week, Fed Chairman Jerome Powell said the central bank had more work to do to cool down.

“We still have some way to go,” he said Wednesday. “We will continue the course until the work is done.”

However, the bond market does not seem to believe that the Fed will continue.

“The market does not support the Fed’s increasingly hawkish view that it will raise rates to higher than expected levels and keep rates there,” said Lindsey Piegza, chief economist at Stifel Nicolaus & Co. “.

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