Home NEWS David Tepper says this is the second-most overvalued stock market he’s ever seen behind only ’99

David Tepper says this is the second-most overvalued stock market he’s ever seen behind only ’99

by admin2 admin2
34 views
david-tepper-says-this-is-the-second-most-overvalued-stock-market-he’s-ever-seen-behind-only-’99

David Tepper

David Orrell | CNBC

Billionaire investor David Tepper said the stock market is one of the most overpriced he’s ever seen.

Before Wednesday’s sell-off, it was “maybe the second-most overvalued stock market I’ve even seen,” Tepper said Wednesday on CNBC’s “Halftime Report.” “I would say ’99 was more overvalued.”

“If you talked to me yesterday, I would’ve said … before the market went down, it would’ve been a 15% down, 5% up type market,” Tepper said. “The market is pretty high and the Fed has put a lot of money in here. There’s been different misallocation of capital in the markets. Certainly you are seeing pockets of that now in the stock market. The market is by anybody’s standard pretty full.”

The S&P 500’s forward price-earnings ratio based on estimates for the next 12 months has ballooned to above 20, a level not seen since 2002.

The founder of Appaloosa Management also called some popular tech names “fully valued.”

“Just because Amazon is perfectly positioned doesn’t mean it’s not fully valued,” he said.

Amazon has been one of the first companies to roar back to a new record after the coronavirus sell-off. The e-commerce giant is up 27% this year as investors bet on its resilient business. 

This is breaking news. Please check back for updates.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

You may also like

Leave a Comment