Tepper assessed the market as cheap rather than expensive at the start of the year, with no inflation present.
“There's no inflation. The market coming into this year doesn't look rich; in fact, it looks almost as cheap as coming into last year.”
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 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 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 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.”