March 8 (Reuters) – Hedge fund manager David Tepper said it is difficult to be bearish on stocks at present and the recent selloff in U.S. Treasuries that drove up interest rates is over, CNBC reported on Monday, citing an interview with the billionaire.
The major market risk has been removed, Tepper told CNBC, and rates should stabilise in the near term. (bit.ly/3eoiZCb)
Government stimulus and a countrywide coronavirus vaccination program have fueled expectations of an economic rebound in the United States, pushing Treasury yields higher in recent weeks.
Tepper, founder of Appaloosa Management, is one of the hedge fund industry’s most closely watched fund managers. He earned billions when he bet on banks during the tail end of the financial crisis.
The billionaire said he believes Japan could start buying U.S. government bonds following the surge in yields, which could help stabilize the bond market, according to the report.
The COVID-19 relief package that was passed by the Senate is another bullish catalyst for stocks, the report added, citing Tepper.
On Saturday, the U.S. Senate passed President Joe Biden’s $1.9 trillion COVID-19 relief plan in a party-line vote after an all-night session.
Tepper also said in the interview that shares of “bellwether” stocks like Amazon.com Inc are starting to look attractive after the pullback.
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