David Tepper Bullish On Stocks

The top performing hedge fund manager told CNBC this morning that stocks were poised to go up no matter what.
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NEW YORK (

TheStreet

) -- Hedge fund manager

David Tepper, who became the highest paid manager in 2009 thanks to his bet on banking stocks at their lows in 2009, is loading up on stocks.

In an interview with

CNBC

this morning, Tepper said that stocks were poised to go up no matter what.

"Two things are going to happen. Either the economy is going to do well- and what assets will do well? Stocks. Bonds won't do so well, gold won't do so well. Or, the economy is not going to pick up and the Fed is going to come in with QE (quantitative easing). Then what's going to do well?" asks Tepper, pausing for effect, "Everything. Stocks, bonds in the near term, gold."

Tepper argued that with the Fed indicating that it actually wanted inflation, there was no way he could not be more long on equities. Tepper's $12- billion fund

Appaloosa Management

was more exposed to bonds, but has been switching more money to equities.

He did say that until the Fed acts, stocks could face some downside and that he had puts in place to limit his losses.

Tepper bought bank stocks at their lows in early 2009, when most of the market was plagued with fear that banks would be nationalized. The fund manager said buying financial stocks was an easy call, after the Government put out a paper that said they were going to buy securities and the prices at which they bought them. Nobody believed them, but Tepper did. "Sometimes it is just that easy," he told CNBC.

-- Written by Shanthi Venkataraman in New York

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