David Tepper doesn't think stocks are a great investment here, but says it all depends on rates

Hedge fund manager David Tepper turned bearish on the stock market amid uncertainties around interest rates and inflation.

"I don't think it's a great investment," Tepper said on CNBC's "Halftime Report" on Friday. "I just don't know how interest rates are going to behave next year... I don't love stocks. I don't love bonds. I don't love junk bonds."

Tepper is the founder of Appaloosa Management, whose comments have been known to move markets.

The billionaire investor has made a number of prescient calls recently, including foreseeing the market collapse due to the Covid-19 pandemic. Back in February 2020 before the S&P 500 tumbled into a bear market, he warned that the virus could be a game changer for markets and "certainly ruined the environment" for stocks.

In March this year, Tepper turned bullish on the market, saying it's very difficult to be bearish on stocks. The S&P 500 enjoyed seven positive months in a row from February to August, The benchmark is up more than 20%, hitting a fresh all-time high Friday.

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