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.”
Tepper says he's miserable despite a good year because he owns the market at high multiples.
“I I we're having a really good year, and I'm so miserable for having a really good year. Because I still own the market, and I can't stand that I own the market.”
Tepper is constructive on Fed easing but concerned about high market valuation levels.
“I'm constructive because of the easing right now, but I'm also miserable because of the levels.”
Tepper says big stocks aren't cheap but he won't fight the Fed in the near term.
“The big stocks are not cheap. I mean, so you don't have cheapness here, but you do have a constructive you know, like, you know, I'm not fighting the Fed.”
Tepper says he strongly prefers split government and is pleased with current electoral outlook.
“I am a big proponent of split government. And right now, as you're more than aware of Yep. It looks like the senate is, republican and the house is democratic, and I'm loving life.”
Tepper explains split government is best for markets and economy, rejecting either party's sweep.
“But from a from this market perspective, an economic perspective, what's good for the economy, I wanna split government. And I don't want all Democrats, and I don't want all Republicans.”
Tepper warns markets could face problems if election results surprise split-government expectations.
“So if it gets surprised, that could be a problem for the markets. But as long as it's a split, the market's gonna be fine.”
Tepper says he likes NVIDIA at current price levels despite earlier concerns.
“I I I kinda like NVIDIA, the price. Okay? So don't get me wrong. I I I could just love it.”
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 says he is leaning short on equities because risk-reward doesn't make sense given central bank guidance.
“I would probably say I'm leaning short on the equity markets, you know, so right now, because I think they're, you know, I think the upside downside just doesn't make sense to me when I have so many people telling me, so many central banks telling me what they're going to do,”
Tepper questions high equity multiples on S&P 220 earnings estimates given current interest rate levels.
“I saw somebody else on your show the other day, they had a two twenty price to two twenty earnings estimates for the S and P.”
Tepper notes going from a 12 to 16 multiple would represent a 33% market increase.
“If it's a 16 multiple, in those days you would have said great going from twenty ten. We talked about those days. I go to twelve, sixteen, that's a 33% increase.”
Tepper believes stock market may have hit its yearly high due to interest rates around 3%.
“And it really has to do with interest rates. I'm not sure we're right on the cusp of breaking out on interest rates at this level, around 3%.”
Tepper sees nothing negative for small businesses with deregulation and tax cuts ahead.
“If you're a small business, you there's nothing negative on the horizon. Nothing. What's negative? They're gonna give you less regulations for Obamacare. They're gonna give you a tax cut.”