today hedge fund giant david tepper made comparisons between 1999 and what 2015 could bring saying "for next year, you have to be aware of the possibility for some sort of overvaluation of the markets and they are fair value right now." now, remember in 1999 the s&p went to a 30 p/e, next year is now like 16, not going to get that high. so here we are, record highs and we asked ask tonight, is there still value in this market. tim, what do you say? >> i think there's value in certain sectors. i'm not sure what he said, frankly. and far be it from me to disagree. >> well, you're the em guy, you can see some of the similarities setting up, 1999, 1998. >> and david tepper makes $400 million before he turns the lights on every year so he's a very successful guy. but when you look at the market, i think if you look at commodities it's a value trap. i think you have to be careful, very interesting valuations. if you look at retail there's a lot of cases where people are looking at the retail sector and saying consumption growth will be supercharged next year with oil where it is. i think jour

. >> echoing david tepper's xhentds. rick? >> yes. david's an economist here. there's inside baseball in the trading floor where they're looking at the savings rate adjustments, fueling this big consumption jump in the third quarter. >> yes. >> and many think that it isn't really a reality. any thoughts? have you been reading those comments? >> yeah. no, i think it is reality. when's happened is the government underestimating medical spending all yearlong. i think they're now getting to reality here. so i think this is genuine. consumers are doing more spending here. i think that will continue to 2015. >> thank you. >> that shift on health care is an important theme. thank you, everybody. >> merry christmas. >> happy 18,000. the dow is up 95 points and 18,055 the current level. the s&p at a record territory. nasdaq remains the laggard today. >> talking about why in a few minutes. coming up with the dow poised to close above 18,000 first time ever, what are investors doing? buy? sell? hanging on? let us know what you're up to now. your chance to voice your opini

so we haven't heard from david tepper.ing my chain about the bengals. he initiated this. >> because of the steelers. is he inviting you on board? >> he has offered me two tickets to go watch the game with the steelers. he's sending me two tickets. don't you think i should ask him for the 2015 forecast? >> yes. tell him if that's the case, you will root for the bengals and and help the steelers. >> could he be productive here? i would need four tickets anyway. >> check out his tie. >> that's santa isn't it? >> yes. what i didn't know is he wears one every day from thanksgiving on. a different santa tie. i'm impressed. >> it's not -- it's not good looking. it's ugly. >> do you have attractive ones? >> i have some nicer ones. >> but since you were going on tv you felt you should go with this one. >> i was sticking to the different tie every day thing. >> bottom of the barrel. >> exactly. i should have saved a good one for today. >> man, if you're going to go, go proud. i like it. go loud. >> thank you. >>> coming up, procrast

david tepper is mostly playing with other people's money. most hedge fund managers are playing with limited partners money. >> but they do have their own money in the game. >> because they are forced to eat their own cooking. in the case of goldman sachs, and a reading from a bloomberg news, $106 million. of the total $483 million to beat up among the 121 employees 106 million with cash and 320 million was stock. some of the they cannot divest for several years. they are eating their own cooking. with that is true, they are reading goldman sachs is cooking. -- >> that is true, they are eating goldman sachs s's cooking. but in the case of david tepper, they have not put money into goldman sachs except what has come to them for years. even when it was a private partnership of until 1999 which is just the this past century, the closest entry to us now, they had to keep their equity capital in the firm as equity capital. >> no matter how this worked out, one thing that has absolutely happen this year is cooking, eating, there is less for the hed

and then there's hedge fund manager david tepper, expressing some optimism about the stock market, writing to stock saying, quote, this year rhymes with 1998, russia goes bad. easing coming from europe. sets up 1999 -- i mean 2015. although you can read that two different ways. >> right, 1999 was parabolic for the nasdaq comp, fantastic for the s&p. obviously, 1999 is followed by 2000. he very specifically didn't mention 2000. it's a little bit opaque. but obviously, if next year's 1999, you have to be 180% long. and that's no what i'm trying to advise people to do. >> listen, tepper has had a very strong, long-term track record, trying to divine his intention from an e-mail, i think, is a little bit of a fool's game. i would prefer dialogue. he's a great guest to have on. >> and a great guy. >> a charitable guy. >> be nice to explore that a little more. i don't want to jump to conclusions to s as to whether saying next year will be a great year. you've got to be careful, then it leads to the next year, in 2000, was a big down year and the s&p fell. >> while the music's playing, jim, got t

mike, is david tepper right to be a little worried? >> sure. you are heading into year seven of a bull market. during that period of time you had a strong dollar. you had strong u.s. corporate profits. the u.s. economy was growing. a lot of the factors are mierred right now. i think there is a concern. the longer we go without a correction, the head winds from the rest of the world's economy slowing and stronger dollar will crimp corporate profits and expand pes quickly and the specter of the fed and what they are going to do and what degree the economy can digest higher interest rates. there are real questions. >> talking of how long it took to get us here, it took about seven months to get from 16,000 to 17,000 and then to 18,000. how long do you think it will take to get to 19,000? >> i think 2015 will be front end loaded. i think we will see 19,000 easily probably by the end of the first quarter. but unlike this year which was back end loaded you have to be careful. maybe the go away in may crowd will be right. >> why easily, chris? valueua

now, let's mention billionaire hedge fund manager david tepper told cnbc the u.s. markets were fairley valued to see the rise in the s&p, another 8% to 10%. tepper says he expects 2015 to be a good year and he's now longer in equities than he was in april when he was 7% to 80% long. he says investors should enjoy the ride but he does caution to be aware of that overvaluation. joining me now is dr. anna armstrong. thank you very much for joining us today. i wanted to kick off with the oil prices and, of course in mid-december, we saw huge oil price volatility. that led equities to sill off quite significantly. we have seen equities bounts back again. is that the correct reaction from equities? >> we have says first, the view on the oil price are. and that is there are quite a few indicators that it might even fall further. there are many expectations it can reach $40. saudi arabia is insistent on 30 million barrels per day and that includes the market share. so i don't think they will give up on strategy easily. however, the big deficit stands at 50 billion might be

david tepper took a nice move into alibaba as well. so i think there is a lot of things behind this whole thing. ali pay, look at transactions on single days, some numbers were absolutely extraordinary. i like alibaba, i think that feeds into the yahoo! story. near term catalysts favor yahoo! >> the thing that stood out is bank of america was able to pinpoint january 15th. they're probably outlying some kind of tax strategy for baba. for google there was no specific date for catalyst that is the crux of the problem be. >> there are much easier catalysts to kind of plan your trading strategy around with yahoo!. to look at companies and look at places where actually google is so much more interesting on setup. this stock, trading back near the 520 level, double or triple bottom on this stock, bottom of one year range, company that is not broken, company that needs a catalyst, it is 20 plus top line growth, 22 multiple, i can buy that right here. >> i'm long both of them. i'm long google and yahoo!. i feel -- >> you like both. >> i do lik

david tep he thinks it will be a good year. teppert the time to be careful now, enjoy the ride, but warneded about the potential of overvaluations. what do we

david tepper says it is not out of the question to see the s&p rise 8% to 10% because the economy isting better all the tenets are there here in the u.s. do you agree? >> i do. i think the u.s. economy is surprised to the upside. much of the second half of this year jobs and initial unemployment claims falling. what we have yet to kick in is real wage gains and seeing some of that next year. corporate business investments been pretty good and even the government will move from a negative impact on the economy in '14 to a positive one in terms of gdp in '15. the only drag is likely to be net exports given the weakness in nonu.s. economies. >> what about some of the other bricks that are in the wall of right now, bob, like the fed possibly raising interest rates, maybe as early as you know mid year? the problems overseas europe and japan with their central banks at odds with our own fed right now. russia. we could go on and on there. do any concern you enough to change your portfolio for 2015? >> not really. i still want the vast majority of the earnings in my portfolio to come from th

. >> david, tepper said enjoy the ride. i think it's a hop on while the cart is moving. could it make it end poorly? >> i don't think we're there yet. we have a conversation of private equity and companies rolling out. just yesterday, we heard about shake shack. right? they're talking about brilling it out 12 times trailing earnings. when chipotle came out, it was roughly two times trailing earnings. you look and say is private equity seeing something we are not from a growth perspective? >> or can they roll out six times of chipotle because markets are accommodative or frothier? >> absolutely. no. i think it's interesting as far as the themes that we are seeing in the marketplace. and look. i think the private equity look is an interesting look looking at from a growth standpoint. >> andrew do you eat at shake shack? >> i don't know, kelly. but what skaerts me is bombs globally, a hard landing in china, japan can't dig -- >> there's always a thousand ifs. >> i don't know if investors fully appreciate them right now. >> probably not. how can you fully appreciate all of t

. >> so joe was e-mailing with david tepper last week. >> right. >> and tepper said that 2015 was goingrhyme with 1999. if you remember 1999 from an m&a perspective -- you've had a lot of deals. i don't want to diminish the size of the deals, but we've had a couple of blockbusters. but 1999 was the year of the blockbuster. >> partying like 1999, right? >> do you think 1999 is going to rhyme with 2015? >> i hope so. >> your bonus will be great. >> it would be a better thing. the one thing i would say that really encourages that is this is pretty constant. all throughout all markets, health care and pharma have been strong all year, oil and gas is picking up. tmt is picking up. i think pick public company targets being the -- >> the inversion craze, is it over yet? zb i don't think big cross border strategic deals are over. >> but a lot of those pharma deals and health care deals were driven or at least people were talking. there was a lot of chatter. people were talking at least about doing those deals because of the tax benefits. >> i really don't think you do huge deals like that becau

david tep he thinks it will be a good year. tepper saying quote, it's not the time to be careful now, enjoy the ride, but warneded about the potential of overvaluations. what do we make here as we sit at new record highs? >> if you look at earnings, we're around 19 times. nx year, we're 17.2. i don't think there's a lot of value there. i think there's a lot of interesting things. the things that got 2014 off to a decent start and gave us volatility in the mid year i think is what happened in 2015. as long as central banks are printing money and there's little inflation. i think we have the same format. i think europe will do better. but what he says i think makes sense. it's not bubble time. >> when central banks are combatting deflation around the world, a result of that is a rice in asset prices. >> it's real simple. you have more money chasing asset prices. i think he's quot to something. it's going to sound funny coming from a guy who's generally bearish, but the market is, i would call it overvalued f. you look at market cap to g

you mentioned david tepor on with an e-mail exchange this morning. here is what mr. tepper had to say about 2015. this year rhymes with 1998. easing coming from europe. sets up 1999, i mean 2015. i like that. one of my comments was russia could possibly default on its debt. he goes on to say in '99 s&p went to 30 pe. next year pe likely 16. not going to get that high but beware it is possible. i would be more concerned about interest rates myself but i think we can go to 16 or 17 if the economy continues to show signs of improvement. >> thank you so much. >>> let's get back to julia boorstin. >> seth rogen tweeting the people have spoken. freedom has prevailed. sony didn't give up. "the interview." seth rogen doesn't just star in "the interview," he also directed it. this is really his project all the way through. he is very pleased and kept mum over the past couple of days ahead of this when sony had announced they were pulling the film. so clearly this is something he has been pushing for and the release is happening on thursday in independent theaters that have agreed to