JB – David Tepper of Appaloosa Management doesn’t share the euphoria of most hedge fund managers, who are riding the bull market and are long stocks, according to CNBC. Bank of America Merrill Lynch is reporting that big money is not playing it safe, but is taking more risk now than at any other time in the past year.
Hedge funds that are stock oriented are 36% long which is in the historic range of $35-$40. In addition, more hedge funds are placing positive bets on the S&P 500 through market-centered ETFs. But as the Dow crossed the 18,000 mark for the first time, David Tepper recommends caution, and predicts that 2015 will be like 1999. Tepper told CNBC, “This year rhymes with 1998. Russia goes bad, easing is coming from Europe. Sets up 1999 (oops) I mean 2015.”
