Hedge fund legends David Tepper and Stanley Druckenmiller say they’re both still bullish, for now

Billionaire investors David Tepper and Stanley Druckenmiller told CNBC on Friday they remain bullish on the stock market even as the Dow Jones Industrial Average keeps hitting record highs.

Tepper, the Appaloosa Management founder, exclusively emailed “Squawk Box” co-host Joe Kernen, saying…

“I love riding a horse that’s running.” He added, “We have been long and continue that way.”

However, Tepper said, “At some point, the market will get to a level that I will slow down that horse and eventually get off.” He did not specify when that might be.

Tepper is well-known for a 2010 market call, which he made on CNBC, and it worked all decade. He said super-low interest rates by the Federal Reserve coupled with the central bank’s massive bond-buying would make most investment choices go up. The Fed-driven stock market rally that ensued at the time became known as the “Tepper rally.”

A Pittsburgh native, Tepper started Appaloosa in 1993, and grew it into a powerhouse, returning 25% a year. In May, he said he was returning Appaloosa capital to investors, converting the fund into a family office. Tepper also owns the NFL’s Carolina Panthers.

On Friday morning, Kernen also got an exclusive market commentary from Druckenmiller, the founder of Duquense Capital. Druckenmiller sent Kernen an email, saying he agreed with Tepper’s characterization of the stock market. He also noted Fed Chairman Jerome Powell and the central bank’s three 2018 rate reductions.

“I revealed a very bullish posture intermediate-term since October when Powell guaranteed he would not rescind the insurance [rate] cuts unless inflation was persistently above target,” Druckenmiller recalled. “Since then, both have worked out, and the Fed is still whining about inflation being below target.”

President Donald Trump’s “election prospects have increased with two trade agreements and big win in Iran, which the Democrats have responded poorly to,” Druckenmiller added. “So I am still ‘riding the horse’ and bullish immediate term,” he added, giving a nod back to Tepper’s analogy.

In the early 1990s, while heading investment strategy at Soros Fund Management, Druckenmiller oversaw…

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