David Tepper back in May 2014

I find that most investors forgot what has been mentioned in the past and tend to focus more on day to day market news. Of course we shouldn't live on hindsight but some small and valuable articles are worth revisiting and for us to be reminded of how the most successful money managers think.

We all know the markets will come to a correction and enter a bear phase as that's what all markets do. Markets are cyclical and without a bear market, how can a bull market be born?

"Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria."



Back in May 2014, David Tepper offered his insights on global events during a conference and warned investors to be "nimble".

The article as follows:

David Tepper, the wildly successful hedge-fund manager who earned $3.5 billion helming his Appaloosa Management firm to an estimated 42% return in 2013, is getting nervous. While Tepper isn’t forecasting a crash, the tone of caution was noteworthy from a manager who had previously been among the most prominent market bulls.

In a freewheeling interview with SkyBridge Capital’s Anthony Scaramucci at the SALT Conference in Las Vegas, Tepper said he views the global backdrop as one characterized by “coordinated complacency” among global central banks.

He expressed exasperation with the European Central Bank: “I think the ECB better ease in June,” he said, adding that he fears euro-zone monetary-policy makers are already well behind the curve in the fight against deflation.

Looking at global monetary conditions, the ECB is tight, China policy is tight, Japan is probably about right and the Fed is probably about right.

So what about the market?

“We’ll probably be okay,” but it’s time to be nervous, says Tepper. Asked if there are any plays he likes right now, he answered with a curt “no.”

So what to do? To be sure, he’s not calling for a rush to the exits, but it sounds like he thinks this wouldn’t be a bad time to hold at least some cash:

“I’m not saying go short, just don’t be too freakin’ long,” he said.