Billionaire investor David Tepper on China: Central bank comments 'exceeded expectations'

when we hear the said okay they go 50 they may go more we think oh mortgage rates in this country oh we think business uh loans in this country start or you know we think interest on the N you immediately thought China and and currency uh differences around the world so that was more important to you because the undervaluation is you you know listen you can look at your chart and look at a chart of Babble on your on your screen right there whatever stock you like in China they are even with the recent moves

are like on a flatline low compared to where they have been in the past and you're sitting there with single multiple um pees with double digit growth rates for the big stocks that trade over here that's kind of versus what you know the you your 20 plus on the S&P right okay and then you have so the question was was Chana going to do the things that you want them to do okay are they going to do the easing measures they that you want them to do so yeah they came the other day and uh

what's his name pan pan gong Chang and I apologize because I can't even speak English well you know he came out and he was like jovial it's like whoa jovial saying we're going to cut and we're going to and we'll give you more and he said we'll do more and more if needed now the Chinese to say we'll do more and more if needed they don't say that because it's not been healthy to say those sort of things in China but they said that the other night and I listen very carefully what government officials say

so I took it that they did a lot they exceeded expectations and he promised to do more and more and more okay and that's very strange language especially for you know any Central Banker but especially over there so that was the first thing that happened and last night um you know they we heard that they were going to have some kind of meeting but they kind of blew away expectations on the physical stimulus you know that they were going to do now physical stimulus if you look at your charts if you like charts because you

used to be a broker and that was a good way to do things fast um what can happen around the World when they do that that's what you have to ask yourself now so now you have the Fed so just a backdrop again the fed's easing you know you have a few more easings coming the Japanese they don't know what they want to do right now but it doesn't matter what people think they're going to be forced into things and I can talk about that in a second um the Europeans are lowering rates and now

the Chinese are lowering rates okay and they're going to be they're aggressive in how they're going to do it and they also believe this or not swap facilities to buy stocks what encourage ing buyback of stocks en curreny BuyBacks right of stocks okay this is China all right this is stock BuyBacks not only encouraging it lending you money to do it and they're giving money like tal money where you can put money out and you have no losses if you want to do it you have you know how that thing works you have only the

money you put up and you you can don't lose money that's a great deal for me I want to be over there and borrow for some of this stuff so what about the relationship between the United States and China how the the Chinese government may or may not feel about American investors but maybe more importantly how the American government feels about us investors investing in China too what's the risk how do you I mean that would that would be a risk and that's why you have limits on how much you would invest however you don't

have the other thing I thought you were going to ask us about tariffs and stuff like that I do not care yeah this is internal stimulus there in the physical stimulus they did last night they're going to encourage consumptions directly saying it so they're really doing all the things that people have asked them to do over these years so what will happen on World Markets so now you have you want to talk with the United States most of your viewers are here in the United States Europe or Japan started you started on Japan okay so

we can go we can go around the world obviously this is incredibly good for very undervalued Chinese equities okay especially when the government's encouraging the BuyBacks BuyBacks BuyBacks and for you to take risk to buy sock take a loan out buy sock you can't lose money on your loan great deal for me I would you if you want to be Chinese sorc in a Chinese name no sorry um anyway sorry um so you have you know so United States so that's so you have this world and so I'm trying to figure the United States so

it's not really your first plot to to go to invest right now because you would say China first Asia second right Asia at large second okay Japan then Japan you know Korea those markets also actually eight Asia and Europe and Europe before Japan and I'll tell and I will tell you why the problem with you know you have to be careful a little bit about Japan although I think it's still you want to be in the equity markets if you look what happens if China runs and they get the economy going and you get the

animal spirits going what happens China chines throw a lot of money in their economy who's one of the biggest beneficiaries in their own economy is Japan and Japan if they get if they start running faster they I don't care what this election is and they have they're worried about this candidate and that candidate some candidates want to might want to go to abenomics and I don't care they don't even understand it yet this just happened last night the market doesn't understand it yet what's going to happen Japan's going to run too fast if they really

stimulate there and when Japan runs too fast they're going to have to raise rates and when they raise rates the Yen's going to appreciate if the Yen appreciates then you have to be careful about the stock market not this the stock depending how it goes now the stock market in Yen terms used to still make money but how much does it move or not because of how it historically does right right so you go you go around the world the US listen the problem with the US and then I can go European European the European

index at 14 times multiple versus a 22 historically incredibly wide 22 here 21 22 whatever you want to say for next year so Europe look yeah it looks interesting we like last in Europe where well Japan has the same sort of moldable right now and you can say we have much better stocks and much bigger tech stocks and that so the question here where you don't have necessarily a cheap market right it's not a cheap Market it probably is you know and I I I didn't listen to I listen a little bit but what cooperman

said yesterday but if you looked at it historically it's a little you know a little overvalued okay I would say that however I get concerned about one thing because I you know fortunately or unfortunately I was around in the 90s I was around in the 80s too but it was around the 90s and um you know in that market where the where the fed you know um s uh you know cut you know cut rates into Y2K you know in a good economy a relatively not a bad economy but a relatively okay economy you had

that those those those you rich rich in rich in in before long-term credit rich in 97 relatively Rich richer after long-term credit and you know bubble Bubble Mania in 99 early 2000 so I don't love I'm a value guy I don't love the US markets on a value standpoint but I sure as heck won't be short well because I would be nervous as heck about the the setup with Easy Money everywhere a relatively good economy you know and China just massive stimulus coming in so it makes me it would make me nervous not to be

somewhat long the US now you know so that's that's how the setup is you know so you have to be you can't be short the US you can't be short anything in Asia anything in Asia nothing