Good. You were with us last on march 23rd you said then, this could be near a bottom. You said that you were, quote, nibbling and it was time to buy a little if you were a longerterm investor are you surprised how far weve come and how quickly weve gone there since that day yeah, its been a bigger move than i thought it would be, for sure but look, theres been a lot of fed action and a lot of government packages since that day and on that day and since that day and, you know, a lot of that probably moved the market than it has the real economy up to this point. So those things happen now the question is, whats the right value for the market now well, thats an interesting question your friend, stan drukenmiller yesterday said this was the worst the risk reward for stocks was maybe as bad as hes seen it in his career. Hes had a long career, david. So do you feel the same way that stanley does how would you put this into context now as to what the right valuation for the market is . Dans much older than me, hes had a longer career so, anyways but, yeah, listen, i think i dont know, its definitely, as of yesterday, now the market is down from yesterday. I would say that 99 was more overvalued, 99 2,000 but i would say its one of the most overvalid markets, maybe the second most overvalued ive ever seen at that day. You know, i thought, if you talked to me yesterday, i would have said, before the market went down, they would have been 15 down and 5 uptype market you know, so, no, weve come down a little bit over the last two days, but still, i mean, that would probably mean its a little bit different risk rewards but its you know, the market is pretty high and the feds put a lot of money in here and its a question, has there been different misallocations of capital in the market. And certainly, youre veeg pockets of that now in the stock market and the market is, by anybodys standards, pretty full but then again, you know, its theres a lot of liquidity there and the fed is still there, so. You know, im not going to its too hard to say that the market cant go up or Something Like that, but its not a very good risk reward market. Ill say that. Youre in a position, obviously, where you dont have to do anything in the market but how does your view today reflect how your positioning looks today . Well, were, you know, listen, i think when we were talking back in march, we probably brought it up you know, weve been relatively conservative since, you know probably january i think that we probably brought our positions up to above 50 in equities and and now i would say that were probably more towards the 10, 15 level in equities. So not short, but not, you know, very guarded, i would say. Mmhmm. When people ask you, and youve sort of alluded to this and we raise this issue all the time and we get asked the same questions, im sure, that we do. How can the stock market, david, be where it is if the economy where it is. Is it as simple as the fed and washington and the amount of money that has been put into the system and does all of that put a floor under stocks, in some respect . It doesnt put a floor in the individual stocks. So depending which sector youre in now, you know, banks are down a lot today. And listen, if youre sitting at zero Interest Rates with this sort of economy with loan losses in front of you, you know, that sector is down today it may still be too high if you look at where it was when we were zero Interest Rates before in this world. On the other hand, you know, i mean, some of the tech stocks like in amazon may be not that overvalued, if you looked at what was before. Look, we went back and looked back in 99 to get a gauge of it and in 99, at sort of the peak, the forward earnings were 24 handle for the s p and maybe 70some handle for the nasdaq. And i think yesterday, those numbers were probably 23 for the s p, pretty high, by the way and for the nasdaq, it was probably in the 30s, low 30s so not that so its you know, im not saying the nasdaq is cheap by any stretch like that, at that valuation, but im just saying the overvaluations, 99, was more where youre having pockets is theres some crazy pockets, though, of misallo way, you knoo have some of theanies, if you s and some of these other sectors. Its down today, maybe they should be lower. You can make arguments if youre zero rates for like defense for four, five years its very difficult to make money there and you have the loan losses. So its a market of stocks and i do think, though, that, you know, as i said, i think that youre somewhat overvalued, you know, but, you know, its hard to say you know, that doesnt mean that you still cant go up. But as i said, i dont believe its a great risk reward you happen to own many of the stocks that have done well, whether its the googles or the amazons, which you were just speaking with. And the question becomes, as youve watched these stocks go up, almost unabated, its really been amazing, how long that can continue to what point those individual names are fully valued or become overvalued even in an environment, david, where we know that those are the ones that are going to do well, not only now, but on the other side of this, how do you think about those names that you own specifically scott, i have to tell you the truth, theres some days awake up and say, why am i if it was nicer outside, i would go golfing, okay . I mean, its theres you know, the fact that some of those names may not be tremendously overval lly overva mean theyre not full. There are certain things happening in the economy that could make them worse. Amazon is a perfectly positioned company. That doesnt mean its not fully valued, either, here and some of the other names you mentioned, you know, talking about a google or a facebook or something, theyre advertising companies. They have a lower multiple and they look like, again, that theyre not rich but they must be full. Fully valued so thats youre getting that sort of thing. And you have individual stocks and i dont want to mention smaller individual stocks, because theyll move, but people have to be very careful about some of these smaller nasdaq names that are just nuts just sort of ridiculously, ridiculously 99type, overvalued sort of names. Are you i know you dont want to mention specific names if we said there was a basket, if you will, of some of these socalled virus stocks, i mean, i think i think people can surmise, what youre talking about. Im not talking about virus stocks im just thinking, just you know, just general parts of the nasdaq that are just some individual names im not specifically mentioning a virus stock. And quite frankly, listen, if you thought that there had to be, instead of 30 million tests a month, 30 million tests a day, theres some things for Testing Companies could be you can say theyre cheap and there could be 30 million tests a day to really open up this country fully if we dont have a vaccine. So im not going to comment on that i dont know know those names. I have looked at a couple of things there are blind pools that people have invested in that went too high. And maybe i should have been more specific. So i guess im talking about ill say some of the names, you dont have to. But the ones that weve seen really go up a lot, that a lot of people have piled a lot of money into the pelotons of the world and the zooms, those socalled stocks, i mentioned them as virus stocks versus the once that have done really well my apologies i should have been more specific in the way i asked those numbers. And i dont know pelotons numbers, but some of those stocks, nothing specifically, but some of them have gone too high and people have to be very careful. I think theres not good analysis for states of economy in the future. I mean, this is a question of what you think is going to happen this virus or the situation is not going to last forever at this state on the other hand, it doesnt mean that we get a lot better. Just you ask the overall stock market question. With these, you know, these virus stocks, it doesnt mean that people arent going to go outside and, you know, put i dont know how peloton will say, look outside, and i dont know the numbers of peloton, so i hate to talk about it. But i would rather walk outside today. Do you feel comfortable and confident that the bottom is in, that were not going to go back and test that because of the actions of the fed and the congress yeah, i think that the bottom is in. I think probably, if the situation remains, you know, if were just dealing with a virus, and theres no other issues that come up, i mean, there is an election coming up there can be, you know, that well have to deal with if the tax rates are going to stay the same, depending on who gets elected, that has to be involved that the market has to deal with as far as regulation and other things, depending on who gets elected. That may affect the market valuation. We have to make sure that, you know, with china and such, the rhetoric doesnt get to such a heated level that theres a war or Something Like that but if you just are talking about, were in this sort of phase in trying to figure out the virus and, you know, how things get better or how we you know, how slow it recovers afterwards, yeah, i think, you know, it might, in that respect, there might have been a bottom put in that doesnt mean theres not, you know, you cant fall significantly from these levels. You mentioned the banks, for example, with rates being as low as they are and taking a look and trying to make an investment decision, as some of our viewers are undoubtedly doing, looking for value and maybe some of the cyclical names that theyre trying to look at now, that have lagged, some of the higher Growth Stocks. Is there a point where you look at an airline stock, david, which you used to invest in, or a bank and you say that some of these values are worth taking a shot at here i mean, listen, i mean, airlines, as long as the middle seat is open, which it should be, are difficult stocks i mean, theyre difficult. And i dont think you can count on more pure giveaways from the government in that sector. I mean, its kind of whats interesting, the government chose to give money to those particular companies that way they did. Im not saying they shouldnt have supported them. I probably would have supported them, you know, in a with a huge facility and bankruptcy, so they would continue operating. And not worry about the shareholders or the bond holders, butjust make sure the airlines run but, you know, you know, this is a little bit tricky right now, as far as some of that stuff right now, as far as the money to give away so it depends. Thats a tough sector right now, the equity, i think. If the listen turns around and theres a vaccine tomorrow, that changes, okay . You know, as far as the banks are concerned, listen, i like i want to be invested in the banks at some point. As i said, my problem is, if you think theres a long period of zero Interest Rates coming up, theyre just trading forgetting about the loan losses themselves, if people look where the stocks are trading where you had these loan period of zero Interest Rates in the past, i mean, their past, and probably, you know, im talking about the years from more or less 11 through 16, you know, you would not be you would not be looking so fast at those banks im not saying theyre tremendously overvalued. Theyre just tough investments so and i have to worry about loan losses, also. And the general economy. So if the fed is going to be its one of those funny sectors. If the defense keeps these rates at zero or near zero, its for, you know, multiple years, its just tough to, its a little bit tougher to make money from those companies. And theres still something called earnings out there that you have to have how are you thinking about the reopen in general . By the way, i want our viewers to know, youve given millions of dollars, by the way, to Coronavirus Relief i think you should be commended for that, for stepping up and urging people of, you know, maybe not exactly of your means fully, but certainly close to it, to do the same but how are you thinking about the reopen and how its going to go look, i mean, like i said a few minutes ago, i wish there were more tests so it could be smoother, but look, until this vaccine or tremendous amount of tests are available, it seems to me that were in this 25 to 50 type world for a lot of the services that we all have come to depend on you know, andi think that, you know, im a proponent of some sort of social distancing. You know, when you you know, that you should open things with some sort of social distancing whether thats 25 capacity in restaurants or 50 capacity or, you know, and some sort of distance and maybe a little bit less distance open here than it is in inside spaces, you know, i just think that you should youre supposed to try to open up and do that with mass or whatever and, you know, so now, if we open up that way and its a long time, this is you know, people are going to be disappointed on what numbers look like. You know, so,and i think that what you mentioned stan before stan is looking at that and the same people are too optimistic about the v. I think people are talking about the nike woosh more as a possible trajectory for the economy and that might be right. Again, its going to be you know, some people will say, testing, testing, testing, testing. And i think if you had if you had it on your phone that you got tested in the morning and, you know, then you could see that every day or any day you wanted to go to a restaurant that you were tested, the restaurants could run on a higher capacity numbers. Thats why i say testing or other sort of venues, so you could have big venues again that are fully open if you could go to the door, scan your phone like you do a ticket and you could see that you were tested this morning and you were fine and go in. You know, or something you know, even if you make some people wear masks or not but, you know, you dont have it so, i dont know we dont seem to be close to that point yet, but at some point we will be and then the question of vaccine, obviously so if you get a vaccine, and the problem with the vaccine is to make so many doses i mean, i dont know, Second Quarter next year, maybe, if were lucky. Its just a lot of the logistics of the doses, when people really have to do the numbers and the analysis of what it takes to make those doses and the logistics to have enough doses to make a difference, its going to take a bit of time, even if you get the right vaccine. So people have to be realistic about how they do numbers. Mmhmm. I mean, its they have to make sure they get the right analysis and timing of Different Things and like i said, if we could do, instead of 30 million tests a month, if you could do 30 million tests a day, now youre talking. So as were talking about testing, were talking about the reopen, masks, and you even tests that work reliable tests, im speaking about. Of course and youre going to need that if were going to play football this year you are, of course, the owner of the carolina panthers. Were dying for football, david, you know people are. Are we going to play football this year, do you think . Well, the nfl put out their schedule and, you know, its not so hard to, you know, test the people that will be you know, the question around playing football, because youre talking about playing baseball in july, right . So, i think whether they can do with the Labor Agreement youre really asking what are you really asking . Whether we will be able to play football on empty stadiums are you asking, will stadiums be filled which part of the question are you asking im asking if were going to play, period i would be surprised, frankly, if youre asking my own opinion, if we have fans in the stands, if were going to play in the fall maybe we will in some capacity, bu but you would know better than that me. Are we going to play football under any circumstances this year, do you think i think if baseball comes and you see them playing soccer in europe and were scheduled for football, i think there should be enough tests available to make sure that were safe on the field. As far as fans in the stadium, you know, if anybody is comfortable going into, you know you wont be having full stadiums, but that doesnt mean you can havent have some fans in the stadium, either if youre comfortable in being in a closed airplane for a crosscountry trip, you know, 18 inches apart, maybe with two seats in between you and being 5 feet away from each other, you might be comfortable in an openair stadium maybe maybe, right . Or if youre doing to are you going to a restaurant, if youre 6 feet apart, are you okay with 6 feet apart in an open air stadium . You know, so its practical. People have to its an analysis of what makes sense and not get you know, if thats what it is if you think that you can be closer and if you happen to have everybody wear a mask in a stadium, maybe you can be, you know, a little bit closer than that maybe you can be 3 feet away if you have masks or 3 1 2 feet away, whatever the number is with masks im sure youve seen some of the simulations with masks or no masks and how people can be. So, you know, an airplane, people are 3, 4 feet away on an airplane its a question of whats practical, what makes sense, some sort of distancing. Tests, da da da da da. What opens, what doesnt open, football, as far as the stadium and fans there should be some amount of fans in the stadium, depending on what locale and where you are and what the local rules are i mean, there could possibly be. So, yeah, listen t, the scheduls out. Youre a Washington Redskins fan . Thats right, thats right. Whos your first game Philadelphia Eagles are you going to win . Of course what kind of question is that. I wish i knew the rest of your answers as sure as i knew the answer to that one hey, i think we play you guys this year, well win that one, too. There may be some dispute on that point, but thats the 13th game of the year, so well see what happens yeah, we will i know youve got to run lets leave it on that note. I wish you the best. Thank you for being on today all right, thank you, stay healthy. Thats david tepper joining us our Investment Committee is here to break it all down, too. Stephanie link, pete najarian, cnbcs jim cramer, the host of mad money. I have to go to jim. I know jim will not like my answer about our first football game, but thats the way i roll. You would say the same thing if somebody asked you the question against my guys. Thats where im going. We play you a lot at the beginning of the season. I love to start with a w. Its just a great show of emotion. That was such a great interview. Lets just break that down for a second he did not say he hated the market he said there are places that are really overvalued. He said there are other places that are interesting theres more stocks that are overvalued