Appaloosa Management's David Tepper expressed uncertainty about the direction of the markets in the short term as a result of interest rates and rising inflation.
"I don’t think there’s any great asset classes right now ... it's a question of how far you think the market can go down in different situations," Tepper said Friday on CNBC's "Fast Money Halftime Report."
Cash isn't the solution, he said, adding that those who hold cash are going to get killed by inflation.
"Stocks may be as good as anything right now, that doesn't mean they're good," Tepper said.
If interest rates remain stable, he expects that stocks will continue to rise through the end of the year, but if yields go higher, he's not so optimistic.
The hedge fund manager noted his exposure to the markets is relatively low, but he thinks investors should maintain exposure to stocks for the long term.
“We continue to keep that exposure relatively low ... I think stay invested in the stock market to some extent, but don’t have your highest concentration you’ve ever had."
The U.S. 10 Year Treasury yield was down 0.032 at 1.643% at time of publication.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.