Last year he earned a whopping $3.5 billion making him the highest paid hedge fund manager in the world. Bloomberg estimates his current net worth at $7.9 Billion.
He’s certainly earned an international reputation for producing some of the highest returns amongst Wall Streets top fund managers.
David Tepper runs one of Wall Streets most successful and respected hedge funds Appaloosa Management LP which manages $20 Billion. Had you invested $1 million in his fund in 1993, today your investment would be worth over $149 million. It pays to listen when he has a strong opinion about the stock market and economy.
Recently, at the SkyBridge Alternatives Conference in Las Vegas, he said, “The market is kind of dangerous in a way.”
He cites a slow growing U.S. economy coupled with a complacent Federal Reserve as the reason for his nervousness. And who can blame him with the stock market trading at all time highs.
Tepper has proven his ability to accurately time financial markets for maximum gains. Following the subprime crisis, he bought heavy into the financial sector and returned 132% to his investors.
Then in September 2010, when the Federal Reserve virtually guaranteed a backstop to a fragile economy, he felt his only option was to increase his exposure to stocks — which proved to be the right move.
Today Tepper is more afraid of deflation than inflation, but he’s not recommending investors sell everything and hideout in a bunker with food and guns. He said, “I’m not saying go short, just don’t be too frickin long.”
He does, however, feel investors would be wise to raise cash, which is always prudent advice when markets have gone nearly straight up for 5 years.
Because of the large 7-figure minimum investment requirement to invest with Appaloosa, most investors can’t take advantage of David Tepper’s market timing skills.
However, we have come across a unique timing tool that has an equally impressive track record and is available at no cost to the average investor. It accurately predicted 22 of 24 major market turns since 1970. That’s an astonishing 91.6% accuracy rate.
In fact, it said to sell stocks and move to cash in both 2000 and 2008, saving investors the agony of watching their savings vanish during both the dotcom and real estate busts.
This tool then said to buy stocks in 2003 positioning investors to profit from the market that would rise 59% before warning investors to move to cash in order to avoid the 2008 meltdown.
It then signaled investors to buy stocks again in 2009 where they could have enjoyed a 79% rise through today’s current level.
Imagine how much closer you would be toward your retirement goals had you moved to the safety of cash during two of the worst market crashes in history, then bough back into stocks near both bear markets lows.
You would have trounced a buy and hold approach which gained a measly 2.3% per year over the same 14 year period not even matching true inflation.
The most remarkable thing about this incredible market timing tool is there’s no cost or obligation to have market timing signals sent to your inbox.