Thread: 'It's smart to follow the smart money' on Wall Street: Miller Tabak strategist

David Tepper said this was the second most overvalued market he’d seen outside of the 1999 bubble

Wonder why he's saying that when he did so much buying in Q1.

Among the newly opened positions by David Tepper of Appaloosa Management were TSLA, TWTR, NFLX, QCOM and MSFT during the past quarter. It appears most buying was in late March, early April when the majority of posts on this website were saying the market was going lower.

https://fintel.io/i13f/appaloosa-lp/2020-03-31-0

I looked over a bunch of 13F's from recent filings and the common theme was to chase momentum stocks. I do not consider this 'smart money'. It might be big money, but it's no 'smarter' than anyone with a brokerage account buying high and hoping to sell higher to the next person. When such a large concentration of money lies in a few stocks, there will be itchy trigger fingers when stops get hit. This behavior is no different from (legal at the time) corners of railroad stocks in the early 1900's.

Read the 13F's over for a bit and you'll realize how small a percentage that individual investors make up in the market. When there are 25-30 funds buying nine figures worth of a stock or it's shares, whatever grandpa is doing with his $50k Roth IRA is irrelevant.

Below from ZH summarizes that view.

As a result stocks such as Netflix, Peloton (which Citron infamously said to short just two months ago much to the amusement of the "Peloton girl"), Amazon.com and Zoom were some of the most sought-after names in the first quarter, according to the latest round of 13F filings, with investors such as Jim Simons, Stan Druckenmiller, George Soros and Philippe Laffont all piling into these stocks.

https://www.zerohedge.com/markets/he...ll-13f-summary