Investor David Tepper Says the Market May Continue to Drop

American billionaire businessman David Tepper says the market may still have 10% to 15% to drop.

“I’m nibbling right now, for what it’s worth,” said Tepper, the founder of Appaloosa Management, to CNBC’s Scott Wapner.
Tepper has said that he has added to his positions in stocks like Amazon, Google’s parent Alphabet, Alibaba, and Micron Technology. “Things look really interesting for the long term,” he remarked.

According to Tepper, the broader market could fall another 10% to 15% as concerns over the coronavirus pandemic continue to escalate.

“If you’re levered, I wouldn’t be levered,” Tepper said. “The market could go down more. On the other hand, we could be near a bottom once they [Congress] get this package done.”

A bill aimed at stimulating the U.S. economy is still being hashed out by the Senate.

More than 350,000 coronavirus cases have been confirmed worldwide, according to data from Johns Hopkins University. Tepper believes that in order for the market to bottom out, we need to see the number of new cases in Italy “peaking or flattening” in the next few days.

“I’d like to see the ventilators rolling out of the assembly lines, I’d like to see the masks being given … You have to have a plan,” he said. Tepper added. “The key is to get out of this lockdown and into a distancing mode.”

Back in February, Tepper had told CNBC’s Jim Cramer that the virus could be a “game changer.”