Markets Are Most Overvalued Says Billionaire David Tepper; President Donald Trump Slams Him

Hedge Fund Manager David Tepper is known for his astute reading of the stock markets.

He opined that the stocks are now heavily overvalued and deserves to plunge.

“The market is pretty high and the Fed has put a lot of money in here ... The market is by anybody’s standard pretty full”, the Billionaire said.



This was compounded by the doomsday scenario painted by Jerome Powell, the Chairman of the Federal Reserve.

"The scope and speed of this downturn are without modern precedent, significantly worse than any recession since World War Two .. We are seeing a significant decline in economic activity and employment", he warned

"The U.S. economy faces unprecedented risks that could do lasting damage if policy makers don’t rise to the challenge," he added.





Naturally, the sequence of events spooked investors and they rushed to sell off their stocks, sending the Dow Jones and S&P 500 plunging like a stone.



President Donald Trump is understandably furious at the opinion of David Tepper and the other Pundits regarding the alleged over-valuation of stocks.

He lashed out at them.

"When the so-called “rich guys” speak negatively about the market, you must always remember that some are betting big against it, and make a lot of money if it goes down. Then they go positive, get big publicity, and make it going up. They get you both ways. Barely legal?" he said.



It is worth recalling that Bill Ackman had on an earlier occasion spooked the market by claiming that "Hell Is Coming, Tsunami Is Coming" and that businesses would go bankrupt.



Later, when the markets plunged like a stone, Ackman revealed that he had made a profit of $2.6 Billion from the shorts that he had bought as part of a hedging strategy.



No doubt, President Trump may have been referring to this incident in his tweet.

Though Bill Ackman was at pains to clarify that he had already encashed most of the shorts before he issued the doomsday call.