Government intervention in the Financial Markets That Virtually Guarantees Investments will rise most, Tepper said in an interview with CNBC.
They described this week's Federal Reserve Open Market Committee statement as a clear "pipes." This is a type of option That Gives Investors the Right to sell a security at a set price and time in the future. In this instance, the government will do whatever it Needs to keep the capital markets from sinking below a Designated level, they will Explained.
Tepper runs Appaloosa Management, a $ 12 Billion Hedge Fund Firm That Mostly trades debt of distressed companies. But The Firm Also trades equities and Tepper Told CNBC That he's Increased Investments in stocks a bit recently.
Appaloosa's main hedge fund Returned 132% in 2009 after Tepper invested in big U.S. That Banks were being bailed out by the U.S. government.
Tepper's Other large hedge fund, the Palomino Fund, gained more than just 11% in the first eight months of 2010. It's Returned More Than 25% a year since it started at the end of 1994.
Tepper Told CNBC on Friday That a Similar situation exists this year. The Fed's statement on Tuesday Suggested That it May launch a second round of so-called Quantitative easing, in Which the Central Bank buys U.S. government bonds Thurs keep interest rates low.
"Either the economy is going to get better by Itself in the Next Three Months ... What assets are going to do well? Stocks are going to do well, Bonds Will not do so well, Gold Will not do as well, "Tepper said in the interview.
"Or the Economy Is Not going to pick up in the next Three months and the Fed is going to come in with QE," they added. "Then what's going to do well? Everything, in the near term (though) Not Bonds. "
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