David Tepper Warns 2015 Looking a Lot Like 1999

Comments from market sage and hedge fund manager David Tepper of Appaloosa Management has traders talking Tuesday as the Dow hits 18,000 for the first time ever. In an e-mail to CNBC, Tepper warned that 2015 is settling up a lot like 1999, the year before the dotcom crash.

"This year rhymes with 1998. Russia goes bad. Easing [is] coming from Europe. Sets up 1999.... [oops] I mean 2015," Tepper said.

He added, "You [just] have to be aware of the possibility for some sort of overvaluation of the markets. And they are fair value now."

Tepper said money was too easy related to USA fundamentals in both late 1998 and now in 2014. He said while the two years are not exactly the same, they are similar.

"Remember in 1999 the S&P went to a 30 PE. Next year PE is now like 16," Tepper wrote.

Notably, in 1999 stocks had a phenomenal year - the Nasdaq rose 85.6%, the Dow rose 25.2% and the S&P 500 rose 19.5%. Of course, next came the crash.

While it is not clear from the e-mail, it appears Tepper is calling for a huge year in 2015 followed by potential overvaluations in the market and a pullback.

Tepper's comments are noteworthy as he has successfully navigated the post credit-crisis market. His fund made returns of more than 100% in 2009. He then solidified his name in Wall Street folk lore after appearing on CNBC in September 2010 telling the investing public to "buy everything" ahead of more Federal Reserve easing. In May 2013, Tepper commented that a Fed "taper" would be good for the market . "To keep the markets going up at a steady pace the Fed has to taper back," he explained. Again he was proved correct.

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