Cramer says David Tepper thinks it’s hard to bet against stocks with Fed backing, vaccine rollout

Investing

David Tepper

David Orrell | CNBC

CNBC’s Jim Cramer said Friday that hedge fund legend David Tepper has a more positive view on the stock market, with coronavirus vaccines getting rolled out across the U.S. and the Federal Reserve staying accommodative.

Investors should take note of the Tepper’s current outlook, Cramer said, given that the Appaloosa Management founder sent Wall Street an early warning shot last February about the risks the coronavirus presented financial markets.

“I don’t want to say he’s wildly bullish. I would say he’s very constructive,” Cramer said Friday on “Squawk on the Street.” “He saw this coming. He knew to get out and now he feels there are pockets where you should be in, pockets of very reasonable valuations.”

Cramer did not specify which “pockets” Tepper was talking about.

“I think it’s important to recognize that a guy who knew [the market] was going to go lower because of the virus is now taking a more positive stance,” added Cramer, who said he spoke with Tepper on Friday.

Tepper, who also owns the NFL’s Carolina Panthers, pointed to the Fed’s massive monetary stimulus and near zero interest rates as key reasons why investors should be in equities, Cramer said.

“As David Tepper told me, as long as you have the Fed being easy and this liquidity sloshes around, it’s very hard to bet against this market,” the “Mad Money” host added.

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