josh brown, what do you make of what david tepper told me? >> well, i guess it depends on your definition of expensive so by the most popular measures, the market absolutely is expensive which is not a judgment on where it goes from here, because expensive can get much more expensive. but when you look at something like an adjusted p.e. ratio, you're talking about 95th percentile or higher, and the only two times we've been anywhere near this level, both times we've had a pretty severe downturn follow. however, some of those 2008 and 2009 major earnings losses that are in part causing the ratio to be so high start to roll off as we get through those years going forward. and, by the way, it hasn't mattered yet so we are expensive. but that in and of itself doesn't tell you anything about what the next six months or one year look like >> yeah, we've got steve weiss joining us on the phone as well. steve, when you hear what tepper has to say, if you look at the fact that earnings expectations and the numbers are going up, ubs just took theirs up

well, yes, warren buffett, david tepper might be a little more bullish. still got some high-profile skeptics out there. >> the sentiment right now, the sentiment among both professionals and now the american association of individual investors argues that we're closer to august of 1987 than we are to another 30% leg up like grantham says. i don't know where you take the sentiment to do that >> yeah. michael, let me ask you, are we in the middle of a market melt-up? >> well, i think what's actually happening, to put it in perspective, the market, i think, was a bit overpriced before tax cuts. now with tax cuts, kelly, i think you're going to see companies that are going to deliver pretty solid earnings, basically because why? because they're going to have a much, much lower tax rate. so i think there's a case to be made as tepper said earlier that the market is, at the least, the same valuation that it was a year ago because of what the expectations will be and what i believe will be corporate earnings going forward >> we actually have that statement from

you are 1,000% wrong on tepper i'm intimately familiar with the strategy david could be net short the market. >> warren buffett has over 100 billion in cash, the biggest stockpile he's ever had. is that a raging sghul. >> wraarren buffett has come out and said. >> they are not guys necessarily overfocused on calling the top of the market, neither one of them. >> that's not true just not true. >> bank of america, and merrill lynch -- >> i spoke to dave last night. >> can we go to scott? >> they raised the question of, okay, what level of bonds will cause stocks to get a little upset? they say the better question is what level in the s&p causes the fed to hike by 50 bits is the fed the unknown risk to this story will they hike faster than people think, more than people think or more times? >> firstly i think the fed is not going to respond to a level on the s&p 500, and i think that -- so at what level on inflation causes the fed to hike 50 basis points faster than what is priced in the market and has nothing to do with the level of the s&p 500. they can talk and, you know, high pott si

president trump this morning pushing for dow 30,000 appaloosa's david tepper theirs it's possible maybe because this stock market cheap going inside these bold calls. plus, trump versus bannon. in-fighting in the west wing wall street's reaction yawn a look at why business and the markets don't steam to care about drama in trumpland >>> and up in smoke. literally. attorney general jeff sessions ending the obama era policy that allowed legal marijuana to flourish a number of pot stocks losing their buzz big time. what now for this budding multibillion dollar business "power lunch" starts right now ♪ your love is lifting me higher ♪ than i've ever been lifted before ♪ >>> well, the weather on wall street may be frightful, but inside the exchanges it is nothing short of delightful. welcome, everybody, to "power lunch. i'm tyler mathisen another historic day for your money. the hits keep -- look at this chart, will you? look at that one-year gains, 25, almost 26% 25,000 now on the dow for the first time ever. want to know what it was back on the, the day of the crash in october of 1987? it

. >> so, josh, i got buffet, i got bill miller, i got david tepper. i got barry reasons steosenstei others coming on saying that this market is going higher. the earnings power from the tax plan is going to be so potentially strong for these companies, the cash flow that they are going to get, the buybacks that you're going to see, the earnings numbers that we're going to get as a result of all of this are just going to be too strong to overcome for people who are starting to get more negative on stocks. >> okay. i hope they are right. >> why wouldn't they be? i pose it that way why wouldn't they be >> i don't think they are saying anything that everyone doesn't always agree with. >> bill mill her 30% upside from here, right? david tepper, the market is not rich. >> he's probably more extreenme >> barry rosenstein i'm more invested now than forever or however months those are powerful statements. >> all right i could have said that in 2012 i mean, look the median forecast of the wall street strategy. >> i don't know how many billions you have invested

david tepper is still bullish. interview with scott wapner yesterday, the appalossa founder said explain to me where this market is rich? it's not rich with the tax thing that just changed earnings projections. with earnings forecasts going up and interest rates where they are, how is this market expensive? there is no inflation, the market coming into this year doesn't look rich. in fact, it looks almost as cheap as coming into last year he goes on to say the market can't go down until the bond market gets hit. it's amazing where interest rates are. he is saying the bond market is the key indicator on whether the stock market rally can continue. >> the bond market point is interesting. we wonder where the money will go if people sell equities everyone thought last year we would see rates end higher than they were. the ten-year didn't do much over the course of the year if you see the yield rise significant significantly, that could be not just a bear market sign for the economy as a whole but make markets attracti

. >> i go back to what david tepper told me last week, and, jim, i want your opinion on this, too, andreally speaks to where we are in the market right now relative to tax reform and earnings expectations which maybe aren't even factored in close enough which, jim, you've also made the arguments that the numbers aren't high enough explain to me where this market is rich. it's not rich with the tax thing that changed earnings projections and earnings forecasts going up and interest rates where they are, how is this market expensive? i don't see the overvaluation? world growth is higher there's nine flakes, the market coming into this year doesn't look rich. in fact, it looks almost as cheap as coming into last year the market can't go down until the bond market gets hit it's amazing where interest rates are. >> look, i don't want to say i worship this, but i've always liked tepper from the day he screamed at me on the trading desk of fixed income telling me what an idiot was in front of a lot of people. also used a few expletives i've loved him a rich hedge fund game, only one willing t

. >> you know, you agree with -- with what david tepper told me, the market, i'm quoting him from yesterday. the market can't go down until the bond market gets hit do you agree with that >> well, i would say some space more differently i think that's true. i think the stock market can't go down until we see how much money pours back in here from repatriation i mean, we're talking about $is trillion, $2 trillion, $3 trillion poe lengthsly coming back to the u.s. and i think a lot will go into buybacks and dividends and maybe even economic growth. >> that's a very bullish scenario. >> well, how can you really be out of the market if you've got that kind of money coming in our direction? meanwhile, we'vegot the etfs attracting over $300 million, the equity etfs over the past 12 months they are chugging along at a record high. i mean, i guess if we're going have a problem, it's going to be like 1987 where the market melts up and something bad happens and we have kind of a portfolio insurance problem which would be etfs experiencing a flash crash. >> ed, appreciate your time. thanks for coming

plus david tepper told me yesterday the market won't fall until the bond market gets hit we'll see ifrick reitter sees warning signs any time soon when he joins us today. and the third upgrade for a major sports retailer this week. is it time to give this sector another look we'll ask the traders on "half-time," carl, 15 minutes away >> look forward to it, scott, see you in a bit >>> let's get to the santelli exchange with rick >> good morning. thank you, carl. you know, this morning i was only 100,000 off on my estimates for what i thought non-farm payrolls would be. and, of course, i was on the high side. jobs were on the low side, but if you looked at wages, hours worked, everything was pretty decent, holding some of the recent level gains it's had in the cycle, but what i find most important, putting everything together in this crazy last year and a half we've had with markets and specifically the big banks start for 2018 is that you really need to think small to make big bucks and i think that it all goes back to a car analogy, the transmission the transmission during the policy

what david tepper told me today about stocks as the dow hits yet another milestone.s the strategist behind the most bullish s&p target on wall street he just upped his forecast today. now he'll join us to tell us why. also, is it time to get out of western digital? one analyst thinks so. we're going to debate it in our call of the day. and the two big-name stocks john and pete say could pop based on unusual activity in the options market see you in about 15. john >> all right, we will not touch that dial, scott now let's get over to the cme and rick santelli for the santelli exchange. rick >> thanks, john. you know, there was a commercial many years ago, where's the beef, and it has become part of our vernacular to question a lot of things going on right now, though, i will answer the question superficially, where's the beef, it's in china. you know, last spring the president and the president xi of china got together and created a plan, and that plan had an offshoot, and that is resumption of beef exports after 14 years look at this bar chart from the usda 1.97 mill

. >> steph, you heard end of the conversation this with barry agreeing with david tepper market is not expected, not where earnings are expected to be and where rates currently are and the fact that he's more invested now than in a long time. >> and we've talked about pockets of the market being very attractive and some being more expensive. i'm noting that the financials today actually are catching a bit. if you look at the yield curve it's steepening and that's after japan is buying a little bess of the jgbs and that might be the beginning process of what we've been talking about, the global monetary policy starts to change and the narrative starts to change and, therefore, rates start to go a little bit higher. it's encouraging to see the financials participate because they have been kind of sloppy the beginning of the year. >> 250 on the ten-year and you made a move as it relates to the bond market. >> yeah. i think it's interests to try to get in there's always the demand the buyers come in march of 2017, the highest 2.62. i bought some -- it would be the equivalency of what pete

. >> well, okay, david tepper, ma smartest hedge funds he leaves a 12% hole for income tax.f you lower the tax rate, there is something close to the median, you will have people coming to new jersey. >> i grew up in new jersey >> can i clarify one point, it is not just offering income. a cop and a teacher, their tax is going up $3,500 >> there is poi >> the point is cutting taxes. >> i agree 100%. >> i am going to worry for the state. >> what do you think >> i am going to get there the president making what sounds like what's often in the early inning is conciliatory comments of getting some deals on daca and immigration. what do you expect >> i think we are going to get there. i have not listened to the whole yet, my understanding is we got to do something to make sure the 800,000 dreamers are not thrown out of the country in march and there is going to be border security there is a deal to be had and we have to keep on working until we get there. you just made the point. we have to sit down and talk to each other half democrats and half caucus >> the president wants a wall

legendary hedge fund manager david tepper is still bullish. interview yesterday the apple founder said explain to me where this market is rich. it's not rich with the tax thing that just changed earnings projections. with earnings forecasts going up and interest rates where they are, how is this market expensive? i don't see the overvaluation. world growth is higher there's no inflation the market coming into this year doesn't look rich. in fact, it looks almost as cheap as coming in to last year. which was a 30% year basically 24, 25 that's an amazing thing to say >> he has made amazing market calls at inflexion points. >> he came on the show the monday before the election asked to come on the show the monday before the election to trash trump about not being a personal giver in terms of charity. almost to try to, i don't know whether to sway the election, but to get his 2 cents in. >> he was not a fan. z >> hates him >> now it's -- you hold both views. you can decide that the president has been good for the stock market, but maybe -- >> not