Tepper warns that tariff wars have historically led to real wars, making him nervous about the current path.
“And if you look at the history of of terrorists, they've resulted in, a lot of times, real wars. So I get a little nervous when you start down that path.”
Tepper says China's central bank exceeded expectations with unprecedented language about doing more stimulus.
“They exceeded expectations, and they promised to do more and more and more. Okay? And that's very strange language, especially for, you know, any central banker, but especially over there.”
Tepper says if China stimulates successfully and animal spirits return, Japan will be a major beneficiary.
“If you look what happens, if China runs and they get the economy going and you get the animal spirits going, what happens?”
Tepper notes China is lending money for stock buybacks with no-loss provisions, unprecedented for China.
“This is China. Alright? This is stock stock buybacks. Not only encouraging it, lending you money to do it.”
Tepper ranks investment regions as China first, then Asia broadly, then Europe, then Japan, then U.S.
“Right? Asia at large second. Okay. Japan, then Japan, you know, Korea, those markets. Also, Asia and Europe and Europe before Japan.”
Tepper emphasizes that China's commitment to do more is very strange language especially for Chinese central bankers.
“Now the Chinese to say we'll do more and more if needed, they don't say that because it's not been healthy to say those sort of things in China.”
Tepper says Chinese central banker Pan Gongcheng exceeded expectations by promising to do more and more if needed.
“It's like, woah. Jovial saying we're gonna cut and we're gonna and we'll give you more. And he said, we'll do more and more if needed.”
Tepper says China is creating swap facilities to buy stocks as part of aggressive easing measures.
“And they're gonna be they're aggressive in how they're gonna do it, and they're they're also, believe this or not, swap facilities to buy stocks.”
Tepper describes China lending money for stock buybacks with no downside risk for borrowers.
“Not only encouraging it, lending you money to do it. And they're giving money like health money where you can put money out and you have no losses if you wanna do it.”
Tepper says US rate cuts enable China to ease, making Chinese assets more attractive.
“our easing is a big deal for them because it gives them more room to ease. So that would be the other reason. Our easing is their easing.”
Tepper calls 25% or 50% tariffs destructive, drawing a line above 10% levels.
“I don't love the the 25% or the 50% tariffs. I think they're a little bit destructive.”
Tepper estimates China has $7 trillion in excess savings that haven't been spent or invested.
“They haven't invested it. I mean, they're huge. I mean, they're we looked at the other day, don't know if it's true or not, like $7,000,000,000,000 of excess saving”
Tepper says China valuations are low teens multiples compared to US market levels.
“the earnings unlike here are still relatively low. I mean, you're, you know, you're talking, you know, low teens versus where we are.”
Tepper says Alibaba is up significantly and Appaloosa is having a pretty good year.
“I mean, like Alibaba's up a lot, so it worked pretty well. So, I mean, we're having a pretty good year.”
Tepper says Chinese stocks trade at low teens multiples versus US, making them relatively interesting.
“I mean, I think the move has been good, the earnings unlike here are still relatively low. I mean, you're, you know, you're talking, you know, low teens versus where we are.”