Stocks Weak as Tepper Admits He's 'Nervous'

May 15, 2014 11:49 AM EDT

Stocks are down sharply Thursday as investors react to cautious commentary from noted hedge fund manager and post-credit crisis guru David Tepper of Appaloosa Management. Shortly after 11:45AM ET, the Dow is down 185, the S&P 500 is down 23 and Nasdaq is down 56.

At the SALT conference overnight, Tepper warned that "the market is dangerous right now" and it is "nervous time." He believes central banks are too complacent now and cautioned the ECB "better ease in June" or it "may be too late." Tepper said while he is not advising going short, "I'm just saying don't be too frickin' long right now."

Tepper's comments on the market 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.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Market Check, Short Sales, Trader Talk

Related Entities

Appaloosa, Standard & Poor's, Hedge Funds