remember, tepper's appearance on cnbc in december 2010 sparked what some called the tepper rally.t the time the fed's bond buying program virtually guaranteed strength in stocks. since that appearance, the dow and the s&p have both rocketed higher by some 45%. and in terms of specific picks, tepper said he still has a small position in jpmorgan. his biggest holding remains citi and he still has a position in apple. take a listen to what he said about that stock. >> do they have something revolutionary in the horizon? revolutionary? yeah -- or do they have something evolutionary? if you don't have the steve jobs around to do the revolutionary kind of thing, do the evolutionary kind of thing and you can still have a very good company that gets better. now, if they don't do either, we've got a problem. >> bill, back to you. >> josh, thank you very much. so, to apple, the current management, i mean, the current knock on the company is that management right now is to blame for a lack of decisive innovation, right? >> and that the pipeline under steve jobs expired a little while ago, an

david tepper. remember he said either the fed will act, the economy itself will go up or the fed will keep acting. >> and every time, he was right absolutely. >> let's find out where he is today with an extended interview starting at 7:40 eastern. first, here is a look at yesterday's winners and losers. all stations come over to mission a for a final go. this is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. [ female announcer ] there's one thing dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school. go dave. when people

tepper. we've talked about it for a long -- for weeks if not months now, scott, that the market is giving you every reason to be in it at these levels. there's really no reason to jump in and short this market. we talked about the s&p getting through 1,600. now we're up at 1,657. today an all-time high. when you have the fed backstopping this market, and not just the fed, but global central banks backstopping global markets, people are putting money to work in the markets. you want to stay long in this market until something changes. right now, i think the s&p has a bee line for 1,700. >> weiss, you've seen a lot of markets. 180 days without so much as a 5% pullback. that worry you? is that a reason to be concerned? >> you know what? it doesn't worry me. i don't think it is a reason to be concerned because of what we see going on underneath the market. you know, tepper laid it out yesterday, and there are sightings of him today in shore hills, very stooped shoulder, bent over, because of the

tepper does, but he's rare.terday i was reading an intro that said is this the rally's last gasp? and that's typical of the way people are thinking. and i said why didn't the writer, why not is the next leg about to begin of the bull? why isn't that what we're writing? because you can watch on the shows that we do in the middle of the day. i've seen "rally's last gasp" as a chyron at least six times over the past six months. every time we have a two-day period where it doesn't go up, we're calling an end to the rally, and as long as you keep seeing that, people aren't believing in this. >> but when we have a market that's in the red, it's not in the red by triple digits. i mean, it's very slow to go down. >> for one day, i know. at this point, in bear markets, bad news is bad news, good news is bad news. in bull markets, it's good news is -- >> it's all good news. >> we just had our 18th positive tuesday yesterday, 18th in a row? >> right. then i said to tepper, you know, i tried to pin him down on valuation. an

tepper admitted when he's wrong.s caused us to rally the whole way. >> people trying to put his comments into context saying he doesn't overthink it and he's giving not overthinking the market a good name because you don't think yourself into various corners. >> he's so commonsensical. he's not trying to sell you his mutual fund. listen, carl, on the one hand we can go to s&p 17, but on the other hand, david, we can go to 14. i really like the cyclicals, but they can go down. he's just saying, listen, buy it, and i find from people at home that guy is not confusing and they gave him a fortune to build his own business squad. whitman, where was your business school? ? i'm working on it. >> i don't quite have it yet. >> we're going to -- >> journalism -- >> i'm not sure. i think journalism in queens. journalism is hot these days and it's going to be a very big school. >> even the justice department wants to know more. >> that's true. yeah, that was nice. the a.p. >> i always liked the a.p. >> i didn't need the justice

tepper on that. here's what he had to say. >> so overwhelming.conomy is getting better, housing is better, autos are getting better. they can't find enough people to work, housing is the only thing holding it back right snow. >> before we get to that, josh, what are dell's earnings looking like? >> this is via dow jones, first quarter e.p.s. of 20 cents. looking for 35 cents. in terms of revenue, roughly 14 billion. the street was looking at it for 13.5. interestingly you don't see the stock moving much. you do see earlier this morning, 11:00, it did take a pretty sharp drop. dell was going to report earnings, but again, according to dow jones, first-quarter eps, 20 cents versus the street, guys, back to you. >> to be clear, josh, this is an earlier release than the street expected. is that correct? >> that's correct. we had david earlier this morning sook. this is even earlier than expected. >> thanks very much, josh. >>> back to andrew now, you basically agreed with what david te peismt peismter said. if up to p-- i'm an equity mana. i think wh

oh, and tepper likes the banks and energy stocks, low interest rates and the big new oil finds we have in this country, and he does not fear the fed stopping its bond buying. in fact, he welcomes it. he says that event, well, that's what every bear is waiting for, right? that event will be good. he thinks, that's right, the fed pulling back will be bullish, because it makes it so the move is sustainable, something, again, we have been saying here. but because tepper made $2 billion, he's got two billion more reasons for people to listen to him than little old me. if you listened to "squawk," though, which you would be nuts not to, because tepper comments on the show moved up the whole market today. i'm not kidding. i was up at 4:00 and said oh, the market looks a little tepid. i didn't know that tepper was going to be strolling on the "squawk box" set and bulling the whole market up. we got the ideas, though, that fit his bullish mindset, because alas, it has been our mindset for some time here on "mad money." perhaps because he taught me how to value merchandise. i'm happy to consider

>> tepper is not long. if the fed announces they're taking anything back, i guarantee he's covering all their long positions. everyone has to talk about the tepper rally. we have such a disconnect, 200 stocks in the s&p, in all-time highs, and we had a fall on the ten-year by seven basis points and the yield. it's such a disconnect. everything's on the fed, it's injected, it's a steroid rally, because of the fed. >> just like the fed was going to stoke inflation by doing what it did, that hasn't come to fruition, has it? >> there is no inflation. there is no inflation right now. >> for all the people who said -- for all the people who said there was going to be, it hasn't materialized, right? >> you know what, scott, scott, scott, it's not about -- nobody's been talking about inflation now. the worry about inflation is on the backside of this. >> rick, my whole point was that all the people who said that the fed were doing the wrong thing, that it was going to cause out-of-control inflation, they've been de

they'll get tepperized. >> you think so? >> they'll be tepperized. absolutely. i hope they go to the supply with me on sunday because i'll start doing my planning where you get the best shovels. >> so the street is way behind the market. this is a bad game so what happens is they have to capitulate, capitulate, capitulate and then you're in a situation where the market's moved up too high, but that's a staggering statistic. i gave a talk at tulane and my daughter goes to tulane wall street series. i gave this incredibly bullish outlook and at the end people were, like, you're worried about the airlines? there are objectists everywhere. are you kidding me? europe bombed a while ago. look at those banks. look at japan another 2.5% or so overnight. now up 45% for the year and the nikkei. one wonders whether the jgbs are getting away from them including the yield with .92 last night. we'll see. 92 basis points last night. yeah. >> relying on the eye on the market piece. surveys indicate that reserve managers have exposure to equities. >> wow! central banks are beati

i think david tepper kind of showing you the risk all year was overthinking it.hink now the question is, at what point, at what level of this market does overthinking it become not the risk, but what they need to do. i think we're fine for a while. we have this kind of 90/95 style melt up that i was discussing before. but i wonder if we're a little bit stretched on the sentiment side. >> how does this impact day-to-day sentiment? i know we talk about how there's more room to run, the market will keep going up this year, especially a lot of people bullish on the second half of the year. but on a day like today, relatively little data, relatively low volume, and yet we have the dow that's up 116 points. >> i think this is some of the money coming off the sidelines, there's cash, fixed income, foreign or otherwise. so i think it's kind of self-reinforcing. but you have to be careful with the downside risk of being underextended. and it will take one little pinprick to set this back, 3%, 4%. >> more and more people are coming here saying less about the defensive stoc

how important was tepper? >> very important.ve a lot of respect, he's got a great track record but the things he said were even more important. >> what did he say? >> the fed policies have -- are working. leading to better housing, better jobs. more confident consumer. earnings were good. not great. but better than expected. margins are holding in. very supportive of stocks, risky assets. there's no other place to be. so i think that what he said was very encouraging. it's something we have been talking about for a long time. but i think that the rally still has legs. >> i agree. rebecca, what's your take on tepper? >> i agree, as well. i mean, we have been adding equity risk in our portfolio. >> adding. >> uh-huh. >> and everyone in the world thinks there is a pullback coming. >> we added in january, we added in march, we added again this week. and i do that with a relative value play in mind. we had an underweight commodities, hard commodities, not commodity stocks. we added to that underweight this week, and said what's going

no one embraces it except tepper. stocks are higher. on always ready to say we might be right on the cusp of a pullback so they don't get caught blind-sided. it gets old. >> i don't disagree with that. you will hear me talking on both sides of my mouth. >> not you! >> i do believe six months stocks are higher than where we are. if you have cash, go buy them. >> what would it take to get the retail investor involved? >> institutional driven rally. what do we have to do to get main street greedy? what are you looking for? >> i think there's some evidence that retail is coming in. volume has picked up a little bit. and evidence that they put cash to work. you heard them talking about the great rotation. no evidence about that sell bonds to buy stocks. i think it makes me think there's another up leg. there's still doubt all over the place. as he joe is hinting, as david tepper said, and i will echo, you don't get ends of bull markets when everybody is doubting everything. >> yeah. do we have a six-month chart? it's hard -- it's been straig

and you spread it out over the summer, which i expect to be pretty volatile. >> mark tepper, we haven't forgotten about you, but you have to admit, you're among a cast of thousands in this segment today. what are you doing with this market? are you wanting to move further into the risk asset area at this point? >> yeah, absolutely. i mean, we think that capital is going to continue to chase yield and we feel that money is going to continue to flow out of bonds and into equities. so one of the things we're paying attention to is the fact that since march, the leaders in the market have been the defensive sectors and that really has not been justified by the earnings season. so we would expect money to actually rotate out from the defensives and into cyclicals over the course of the next several months. >> so you want -- you're among those that's going towards cyclicals at this point? >> absolutely, yes. >> okay. michael yoshikami, everyone's talking cyclicals right now. are you as well, very quickly? >> yeah. we have actually moved a bit of money towards cyclicals. we bought a company re

obviously, david tepper concurs. we think that if they do taper, that will be a positive sign. we think the exit to all this qe may last, at least, ten years, before they normalize policy and also the yield curve. so as long as the yield curve t-bills are at 0.1%, 30s or teetering around 3% and the tens are teetering around 1, 0.8%, we think there's no alternative to put your cash, as well as the fact that emerging markets, you know, let's talk about japan. japan has been in depression for 20 years. it's the third largest economy in the world. you know, couple japan with the united states, pumping in $2 trillion a year, with some of the best managements on the globe, and you want to be short this market? i just don't see it. >> right. and michael tepper also used a word, somewhat hesitantly -- >> goldilocks. >> yes. >> we've used that word too. you know, we have the fed missing on both of their mandates, they're missing on inflation, they're also missing on employment. the fact that mr. ip said that if the fed did nothing, employment might be 7.5, 8%. well, employment probably

the gains, greater optimism about the economy and then encouraging words about stocks from david tepper. co-founder of the hedge fund appaloosa management. here's why he and a growing chorus are bullish on stocks. >> the economy's getting better. autos are better. housing is better. it's continuing to improve. they can't find enough people to work in housing is the only thing holding it back. we don't have inflation. you have utilization so you have room there. labor, unemployment is high. so you havroom ther there'no inflaonon the rise. we have more room to run. >> and run they did today. the blue chip dow rose 123 points closing at that new record of 15,215. the s&p 500 was also up 15 reaching a record close with 75 of its constituent companies posting all-time highs. >> joining us with where the market goes from here, shawn darby from jeffreys. shawn, let me add to the numbers of statistics that tyler jt ntioned. 178 days that the s&p has been up without anything more than a 5% correction. so does this mean that it's time for a correction? or maybe not. >> well, the market breadth ha

or there's too much. >> i don't know the tepper would be happen if they went from 85 to 75.a start. >> do you think it was i trial balloon? >> i think it was. someone said it was a miscue. i think it was a trial balloon. >> i think it was a trial balloon. he sees what happens this morning. he will be very cautious of it. >> 100 points isn't the end of the world and now it's 80. >> 7% in what japan. >> there was emotional reaction, as you said. oh, my god, they're talking about tapering. so i think it's a mixed review. is it really robust enough to handle the tapering and the easing, or is it -- >> is that rhetorical? the answer to that is clearly no, in my opinion. economy is not robust enough to handle them going off. if they aoefd up too much right now, the markets would be a disaster. >> it sounds like everyone at the table -- no, no. you think that. >> i do think that. right before being -- i think it's right before being good enough to taper. >> you think we're there and i think we're not. >> three straight swoons. and i don't think it's going to swoon this time. >> eri

hedge fund manager david tepper fueling the conversation on squawk last week. >> if there is a true taper, there better be a true taper. >> and that is a conversation i'm very sorry i missed. dallas fed president richard fisher is here starting at 7:00 eastern time. >> even better looking now because he's got even more. >> power? >> no. he has more power, but in this case i was talking about grayer hair. >> guys look distinguished when they say silver. >> they do. maybe i will get rid of the hair club for men, yeah. >> you've got it coming in. you've got it coming in. >> which i don't use. we settled that last week. mark grant, yeah. >> i'm not just the president, i'm also a client. >> on my scalp, visual. but on the coloring, too. >> well, he saw you blow drying it. >> yeah. but he copped to coloring his. he said, oh, it gets a little help. mine does not. anyway -- >> let's get a check on the markets this morning. the futures, this morning at this point they're slightly lower, down about 16 points for the dow. at the present is indicated down by about 2.3 points. oil prices this morning,

david tepper cut his holdings by 40%.h quarter. on the flip side of that, david einhorn raised his stake buying both apple stack and options, while dan loeb of third point disclosed a new holding on apple options. taking a look at apple shares this morning, they are trading slightly high, as well. >> jackie, thanks for that. interesting stuff. mary joe jocobi, what do you read into these guys finding sales? >> i think it's interesting just to see what they are doing because they are very successful investors. on the other hand, it's after the fact so it's not all that helpful other than in terms of trend watching. why are you buying banks now, for example? why is apple hot again? but what does it really mean? an analyst better than i needs to interpret -- >> i expect you've got a long-term buy and holder like warren buffett, if he believes in something, it's a fresh purchase, you didn't get in at the same time, but perhaps with warren it doesn't make a difference if you get in two months after he did. >> or get out two mo

as far as s&p, it's cheap protection here, judge, and guys like tepper and so forth, it doesn't appear that people are hitting the exits. instead, they are holding and they are buying protection. >> and what's the best play to make right now in the market? what are you doing? >> the one area i would definitely hit the exits, actually, is in materials and energy. what we're seeing in the commodity space was a dead cap on oil. >> today in an overall dead market. i get you. >> oil inventories had the highest present since 1982 which gives you the commodities as a whole. copper is down 3.5%. i think what is interesting is the rotation in technology and we've seen names like intel, me microsoft, apple, qualcomm, oracle is another name that could be a good value play within the market. >> we're watching all of the markets. stock, bonds, both have been going up. that's interesting in and of itself. our next guest says now is the time to go short bonds. he's at jpmorgan asset management. welcome to the show. thanks for being on. >> thanks for having me on from boston. >> why is now the time to

today secretaryou tepper step to request and accept the resignation of the acting commissioner of the irs because given the controversy surrounding the audit it is important to institute new leadership to help restore confidence going forward. second, we will put in place new safeguards to make sure this behavior cannot happen again and i have directed secretary of their to be ensuringt implents the ig recommendations right away. third, we will work with congssas it performs the oversight role and our administration has to make su we are working hand in hand with congress to get it fixed democrats and republicans to treat the authority with the responsibility it deserves that does not smack of because one thing you have seen across the board everybody believes what haened matt as reported in the ids report but it is fixable it is in the best terest to fix it. i will do everything in my power to make sure nothing like this happens aga. by holng responsible parties accountable and the new checks and safeguards going forward to make sure the laws apply as it should be in a fair and impar

. >>> meantime, investing titan david tepper on "squawk box" this morning, very bullish on equities. hugh, do you agree with his pretty wildly bullish view? >> he's a tough guy to disagree with, but on a longer-term basis, i think he has it right. the performance of the important economic numbers we all watch every day, i think he's fine. i think the problem i have with what david is saying, i think common sense alone tells you we have come very far, very fast this year. it's just common sense alone says we're due for a pretty significant correction, and i it make a fairly good case for a correction, valuations a bit high right now, so i think, yeah, longer-term basis, smart guy, he's probably got it right. short-term basis, i think everybody has to be a little on their toes. >> nothing goes up on a straight line, right? nonetheless i asked david what would change hi bullish view. he kind of searched a bit for some to find. would you agree that it's quite difficult right now to find a serious reason for the market to move backwards? >> yeah, i think it's pretty hard to find something

note it's interesting you have the anointing of certain financial celebrities and gunlak or david tepper, some of the folks who seem to be telling people what they want to hear, how it's an easy trade. it makes sense not to overthink it on some level but at what point does it make sense to start thinking harder about exactly what's ahead of us. you just had that discussion how people are hair trigger about the fed, that's because it's the one thing that you could foresee changing that picture, right? i think it's always the unforeseen thing that's probably the thing that undoes a lot of what you've already kind of put in place in terms of the rally so it's very hard to kind of come up with that one answer, like here's when to worry and why. >> let's switch to an individual stock story the move google has enjoyed recently. some people are asking whether going the is the new apple. >> it's interesting, one reason people ask the question it's logical in the sense that google almost took the baton from apple if you looked at the chart, it seemed to say okay, fine, this is your new tech growt

it's an incredible thing, isn't it, that a good manager like dave tepper can come on "squawk box," asnd make news, actual news, by just simply being unequivocably bullish in the greatest market i've ever seen. however, most chief executives didn't see it that way. and they still don't. so instead of looking for bargains where prices were lower, they sat on their hands or maybe they bought back some stock, teeny-weeny little bits, instead of the cheap and ultimately additive stocks of others that they could have purchased when they had a chance. most, but not everyone. not everyone sat on their hands. so let's think about it. who actually took action? what kind of people? wide-eyed guys, crazy people? i don't know, let's think of these guys. think of the people who stepped up to the plate in this period. first, there's the totally and correctly beloved warren buffett, who bought heinz three months ago for the same price he would probably have to pay for it today, except he got the whole company. yeah, takeover premium and all. that's right. buffett stole heinz in retrospect given how h

in 13-f filings, soros and tepper cut their stakes, but ihorne increased his stake to 2.4 million sharesh, thank you so much. >>> the equity markets continuing to reach new heights today. still, credit suisse remains bullish. let's talk about that and how to invest with tim o'hara, the global head of equities, president and ceo of credit suisse usa, and he says one reason his ipo volume, which is up globally by ç70% versus las year. tim joins me right now to talk about that and where he's telling his clients to put their money to work in this market. so good to have you and thanks for having us at your trading floor. >> maria, it's great to have you and your crew. >> so market meltup, let's begin on this market, which has been unbelievable. this has to be great for credit suisse, given it's a melt-up. >> it's been very good. the volumes have been higher. they've come up off of their lows after last year, particularly in the u.s., but in a number of other markets around the world. the valuations despite the run nekts are still pretty attractive. and it's reversed a multi-year trend of di

and david tepper's appaloosa cut its stake by 40%.ational, remember, that was his long call, at the sohn investor conference added 2.7 million shares. einhorn maintained his position in the miners. that big theme with leon cooperman's o megaga advisers. he also likes the gld, the etf that tracks bouillon. can he also carved out a position in the sld, that tracks silver, which is near an 83-year low. >> some of the smart money going to those metals. >> i wonder what time in that quarter, because they have not done well lately. >> although, that's when you buy, right? >> thus the reason to buy. >> we'll see if it works out. >>> as the work in our nation's capital piles up, such as tax and immigration reform, the white house is now battling scandals on multiple fronts. eamon javers has the latest developments from scandaltown, where things got a bit hostile today. eamon? >> we thought that eric holder, the attorney general's testimony here before the house judiciary committee might get a little bit heated over this irs investigation issu

i know you didn't think last week the taper tepper tipper tapper none of that mattered. i don't know. i feel different. >> you were telling me we're on a straight line up. >> until last week when you told me that it meant nothing, that the fed didn't change anything. and i said the second derivative of the derivative did change things. >> it's the last trading day of the month. this month has been really crazy. >> with europe, remember that one? we got that date in history where you said, no, no, no, and it all came straight down in yields since then. last week on thursday, it was with the moment. i think that was a moment on wednesday when they let us know that eventually they were just starting to close the thicket as our people spell it here. but i think it's positive long-term. i think the market finally goes up. >> rallies. but in the short-term, it's going on be -- >> well, i think initially in watching what happened in japan, too, is that -- the fed has been moving all of these markets around the world. but your boys on thursday night told you. now you forgot that

. >>> citigroup shares rose more than 2% after hedge fund manager david tepper said the company was hisest holding. morgan stanley shares rallied after it told investors it would hit 10% return on equity by next year subject to certain conditions. that it from cnbc, first in business worldwide. now back to "hardball." >>> welcome back to "hardball." you don't see many days like this. we got ahold of the i.g. report on the irs scandal. it said the irs used inappropriate tactics in reviewing conservative and tea party groups applying for tax exempt status. it also makes clear many organizations received unnecessary burdensome questions like give us the list of your donors. it says the irs got the idea for this whole program of going after these groups from members of congress. now, that's going to be fascina fascinating. they must have a letter from somebody. we're joined right frnow by michael steele, former chair of the rnc. and ron reagan is an msnbc political analyst. i want to start with you, ron. we were going to talk about benghazi, but this is the hottest story. three points, clea

we talked earlier in the show, guys about these big investors, soros, buffett, tepper, buying into thesetion companies are making a lot of money around the world. dovetail that with this kind of information, that is why this stock isn't down. it was up over a buck earlier today. of course caterpillar, you know, they have had a couple of bad numbers. they missed two quarters in a row. this is what i'm always looking for to stay ahead of the curve. if i'm in the stock i feel like it is good news. lori: looks like a 787 is about to land. that boeing 787 with the battery. ashley: at chicago o'hare's airport. united flight of a 787 dreamliner. they have been out of commission 123 base with the lithium-ion batteries overheating and smoking and everything else. they have the fix right. that is lovely sight for boeing. >> certainly is, guys. ashley: we actually made a flight. >> that is the lesson for today. just don't take the headline. a lot of time investors see news that good news, stock is down. bad news the stock is up. take the extra step. health and wealth is worth putting extra effort.

tepper's point -- he was on this show for three hours or however long it was.t saying the second -- the fourth derivative is maybe something changed. >> the market completely rejects the fed's view of its own policy. the fed is saying it's a stock. the market says, show me the flow. where is the next methadone hit coming from? >> opium. >> opium. if i'm not getting that every week, i'm out of the business. tom, is the fed losing this battle trying to convince the market about how its policy works? >> well, steve, i think you're actually exactly right in terms of the timing when the fed may begin tapering as long as the improvement in the market continues into the fall, it will be tapering as of that september meeting, that two-day meeting. in terms of the success of quantitative easing, we recently wrote a piece on this. we actually don't see the success of qe3. the first round of qe back in 2008, in october of that year, did you have some success at restoring market function which led to a recovery in the economy. but since then you haven't seen an improvement

. >> but tepper the other day didn't say, it could be a 5% pullback at any time and i didn't wait -- he just said we're in a bull market. it's definitely going higher. but you know what? he's not a sell side guy trying to keep his job. he's a guy to made $2.2 million last year. >> he can say whatever he wants. >> he can say anything he wleefs. >> is there anything that's more reliant on the commodity than it gives you something back and -- >> i can tell you something more reliant on that. a piece of blue paper with a white line down the center. $43 million. >> really. >> i don't know if i agree with that because it's got his name on it, right? >> i guess it's the name. >> one aspect of it. >> can it you one story about art as an asset class? i interviewed a ceo once and he said, no, the billionaires come to us. there is no other asset class in the world that can suck up $43 million in under four feet. you can't do it with jewelry. >> pottery. >> maybe. but there isn't that much that you can pay 42 million for. okay? you can't buy a house, you can't buy a boat. >> you put those things

whether it's just short-term and it's back to the races or whether it becomes a bigger problem, we had tepperwpoint would be when we do taper, that it is evidence that the fed realizes we don't need them anymore. it could be seen as a positive and give another leg. >> i think there's two big questions about monetary policy. that's the great, big uncertainty here. one is will the market actually be ready is what you're saying for that day when the wording in the fed press release is to the effect we're taking our foot off the gas. >> i want that to be half full instead of half empty. >> question two, which is a bigger one is can the fed actually unwind its balance sheet in a way that is not disruptive to markets. >> you want it back to what? >> one reason i think the fed can do it in a way that accommodates the markets is because they can do it at whatever pace they choose. >>> maybe 800 billion was too slow. maybe we were artificially too low. >> some who said on this show that the fed would keep its balance sheet in the $3 billion range for long term. >> right. >> i think they have many opti

right that we are in the moment that every word matters, but i will reverse myself and go the david tepper who will tell you sh, hey, the bulls want this, but they don't realize it. by the way, the banks would do so well in a taper iing way. >> and you e poipointed out thet day in terms of pain yesterday, because we have had it so well. >> well, in '87 to the peak or looking to the november run-up to the march 3rd runup in the nasdaq, they had no breathers whatsoever to speak of. but we are still far from where that was. we had great discussion on street signs talking about how you were making 500 nasdaq points a month during that 2000 run and here you are making 200 nasdaq a run, and i like to have apples to apples comparisons. >> fair point. >> not to mention the multiples then were, well, you could not have a multiple to earnings because so few companies had earnings. >> and it was 80% earnings and go $600 billion -- >> and cisco was the biggest company in the heyday. >> and g.e. had a multiple of 45 times i believe it was at one point. >> and so if you keep the perspective, because peo