Bloomberg: Appaloosa's Tepper Says Stock Markets Not in Bubble (Interview)

Video: Appaloosa's Tepper Says Stock Markets Not in Bubble


Following my previous article: Is this the beginning of a secular bull market?
David Tepper has made another appearance on Bloomberg and opined that the market is NOT in a bubble.
Tepper is the highest paid hedge fund manager in 2012 and he is known for making sound market calls.

Key takeaways:
1) Market is not in a bubble. He uses S&P and Nasdaq Forward PE multiple to illustrate his point. Below chart shows PE multiple (not forward) of S&P500 which has rallied from 17x (1995) to 31x (2000) pre internet bubble. Now post GFC 2008, the market's PE has been in range bound between 10-18x; still well below implied PE multiple of 25x.

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