Returns Since Tepper's "Balls To The Wall" Speech: Gold +31%, S&P500 +23%

Tyler Durden's picture


We suspect even the CNBC anchors were somewhat taken aback by the babbling of the now infamous David Tepper this morning. A lot of bluster to basically tell us not to fight the Fed and ride the wave - as far as 'mistakes' in the past "Hi Mom" and "my friend likes your friend" was the omnipotent manager's response. However, Tepper's main thesis, reiterating his September 2010 speech, that 'all voluntary action abandon to the Fed, ye who trade these manipulated markets' remain in place. So how has that worked out for i) Tepper, and ii) those who continue to refuse to yield to Central Bank authority? See below...


The full Tepper speech:

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Mon, 12/17/2012 - 10:12 | 3070904 slaughterer
slaughterer's picture

Looks like gold has a ways to go down on this correlation trade.  

Mon, 12/17/2012 - 10:15 | 3070909 GMadScientist
GMadScientist's picture

Correlated to each other...or to a third variable?

Mon, 12/17/2012 - 10:24 | 3070929 francis_sawyer
francis_sawyer's picture

Hey Tepper... "Balls [my] to the mouth [yours]"...

Mon, 12/17/2012 - 10:49 | 3070993 Enslavethechild...
EnslavethechildrenforBen's picture

Yeah, so the  Bankers have their cocks out. Good time to tar and feather them

Mon, 12/17/2012 - 12:49 | 3071306 nope-1004
nope-1004's picture

Gold outperformed S&P, even when Gold has been held in check (down) by big banks to control their ponzi, and S&P has been bid rigged (up) by gov't sponsored HFT's.  What does that say about how bad the system really is?

Tepper is an idiot, IMO.  He's not telling the full story of what kind of a "fund" he operates.  I don't buy it - one day it will be revealed.........


Mon, 12/17/2012 - 11:05 | 3071036 indygo55
indygo55's picture

At 3:50 he says with the Senate package theres no way the debt to GDP is going up for ten years. Huh?  Really? With a trillion plus added this and every year into the future to the debt how does that work out? Is he in on it?


Mon, 12/17/2012 - 10:47 | 3070988 Snidley Whipsnae
Snidley Whipsnae's picture

The purchase of gold with fiat is a short on all fiats.

All gold purchasers are 'fighting the Fed' and every central bank except a few in SE Asia and some that are beginning to build central bank gold stockpiles for their balance sheets and/or soverign wealth funds.

No chart will reflect the big advantage that gold purchases have except in hindsight. There will be a ramp up in gold against fiats as long as central banks hold real interest rates negative... even though most soverigns are attempting to cap PM prices. Mr Market is winning.

So, imo... anyone that has 'fought the Fed' by purchase of PMs for the last ~ 11 years is winning the fight to this point in time. And, if the control of PM prices is lost their will be a hellofa gold/S&P chart to look back on.

No amount of financial innovation can convert paper to physical PMs.

Mon, 12/17/2012 - 10:56 | 3071018 Enslavethechild...
EnslavethechildrenforBen's picture

All assets will rise in price but not in value. At the very least they can not tax your Gold if that is all that you own. Over decades, Gold has the highest probability of being worth something compared to all other asset classes. Even good farmland can become radioactive and worthless

Mon, 12/17/2012 - 10:15 | 3070908 Jason T
Jason T's picture

you could have choosen to show that chart since January 2011 and Gold would have been better to hold/bury.

Mon, 12/17/2012 - 10:41 | 3070974 sessinpo
sessinpo's picture

Thumbs up for you. It's nice for these threads to pick an choose their data points. Sorry TD but I tell it like I see it even if it offends the host. It's called the truth. But I know you are just reporting what is on the MSM.

How about having the balls to use use some real historical points for perspective? I'm afraid you won't see that on CNBC. And so I will maintain my position that PMs will rise moderately relative to other assets.

Gold's main problem isn't supply, it is demand. The demand will be for whatever is still accepted for payments of bills or debts. And that my friend is still that shitty fiat currency that I and you despise. But that is the truth and fact and what we must deal with, not the fantasy of a currency backed by real goods or commodities.

Mon, 12/17/2012 - 11:00 | 3071027 cxl9
cxl9's picture

whatever is still accepted for payments of bills or debts

Yes. And most importantly, taxes. As an American (well, half of us anyway) you must come up with a certain amount of dollars every year to pay to the government. If you fail to do so, the government will send some goons to seize your property or imprison you. If you resist, they will in extreme cases murder you and your family. It's all about the dollars to feed the monster, and don't forget that. This constititutes a huge foundation of demand for the dollar. You simply have to acquire them somehow in order to pay your taxes. Government is, essentially, an elaborate extortion racket which demands payment in dollars. Eventually, in the course of the collapse, when tax evasion and outright tax rebellion become rampant, and transactions are conducted in black markets, demand for the dollar will sharply decline and its value will be correspondingly reduced. People won't need so many dollars anymore to keep the goons away from the door.

Mon, 12/17/2012 - 11:17 | 3071057 hooligan2009
hooligan2009's picture

don't work, pay no tax, claim no benefit...its easy..

Mon, 12/17/2012 - 13:36 | 3071441 Panafrican Funk...
Panafrican Funktron Robot's picture

I personally buy/hold physical gold "in case shit".  The case for continued and upcoming "shit" is pretty strong.  Ergo, any short term dollar price weakness = a discount on the only wealth protection that actually works.  

Mon, 12/17/2012 - 10:17 | 3070915 Comay Mierda
Comay Mierda's picture

eur/usd about to break out.  as bad as the euro is, the dollar is worse.

Mon, 12/17/2012 - 10:19 | 3070924 Cdad
Cdad's picture

A couple of tweeters were out in front to draw attention to Tepper's appearance, calling him "brilliant" and "my friend."  And then came 45 minutes of sheer babbling.  Fascinating.


Mon, 12/17/2012 - 10:28 | 3070938 Atlasshruggedme
Atlasshruggedme's picture

This chart looks correct to me :-), but the gap should grown larger :-)

Mon, 12/17/2012 - 10:33 | 3070946 Snidley Whipsnae
Snidley Whipsnae's picture

Instead of wasting my time watching Tepper I watched, once again, this interview of James Turk / Doug Casey.

It's ~ a year old but definitely an informative and entertaining view...

Nothing has changed since this 11-11 interview except the central bankers and soverigns have increased their money printing... and the rapeing of their Main St citizens.

I like this interview because both these guys have a lot of experience, Casey calls the jr miners exactly what they are, defines a depression (we are in one), and both men are obviously at ease and saying what they think... How rare is that?

Mon, 12/17/2012 - 10:33 | 3070948 caimen garou
caimen garou's picture

he sounds like charlie browns teacher to me, can't understand a word he said! they are trying their best to herd the sheep to the slaughter house!

Mon, 12/17/2012 - 10:34 | 3070950 Debeachesand Je...
Debeachesand Jerseyshores's picture

Anybody who pays attention to that dickhead should have his head examine or his "balls".

Mon, 12/17/2012 - 10:36 | 3070957 slaughterer
slaughterer's picture

So, QE4EVA now has its "balls to the wall" Tepper christening.  The media are really rolling out the deja vus to get the QE4EVA rally rolling to new highs.  

Mon, 12/17/2012 - 10:37 | 3070958 bank guy in Brussels
bank guy in Brussels's picture

Phrase 'balls to the wall' actually comes from the operation of steam locomotives, where levers with a ball on the end would be against a metal wall when running at max steam

Of course readers often think of something else ...

Mon, 12/17/2012 - 10:37 | 3070965 slaughterer
slaughterer's picture


Mon, 12/17/2012 - 17:41 | 3072711 Going Loco
Going Loco's picture

Steam, yes. Locomotives, no. "Balls to the Wall" refers to governors, fitted to stationary engines, which worked on the principle of centrifugal/centrepetal force. The balls were hung on a spindle which was driven by the moving parts of the engine and connected to the steam valve. As the engine sped up the balls flew out and closed the steam valve thus slowing the engine. When set up correctly these devices operated imperceptibly, opening and closing the steam valve by tiny fractions. keeping the machine running at an almost constant speed, or as near constant as makes no difference. The term "balls to the wall" meant that the engine was set up to run flat out, with the balls fully extended but the valve remaining fully open nonetheless. Such devices were never fitted to locomotives anywhere in the whole wide world. 

I know that nobody here gives a damn but I had a few minutes to spare and I have owned and operated steam engines for nearly 50 years so I thought what the heck...

Mon, 12/17/2012 - 17:43 | 3072717 Going Loco
Going Loco's picture

Thinking about it, this is what Bernanke and Mervyn King and all the rest of the dickheads are doing, isn't it?

Mon, 12/17/2012 - 10:38 | 3070968 hugovanderbubble
hugovanderbubble's picture

Perfect day for long TLT

Mon, 12/17/2012 - 10:39 | 3070972 slaughterer
slaughterer's picture

I lik UYM better than TLT.

Mon, 12/17/2012 - 10:39 | 3070973 hugovanderbubble
hugovanderbubble's picture


Spanish COVERED BONDS = JUNK = is the biggest fraud EVA

Mon, 12/17/2012 - 10:45 | 3070982 forwardho
forwardho's picture


Mon, 12/17/2012 - 10:50 | 3070996 sessinpo
sessinpo's picture

Let me introduce you to some USA bonds. They are much better then those junk Spanish bonds you spoke of. And by the way, if you buy "X" millions of our US bonds, we'll throw in some ocean front property in Arizona for free. You don't want to miss this opportunity.

Mon, 12/17/2012 - 10:53 | 3071008 GMadScientist
GMadScientist's picture

"See you all in Arizona Bay!"

Mon, 12/17/2012 - 11:35 | 3071106 Floodmaster
Floodmaster's picture

360 payments for a pile of bricks, banks / central banks are mainly illusionist.

Mon, 12/17/2012 - 10:42 | 3070977 hugovanderbubble
hugovanderbubble's picture


MACD, RSI bearish divergences 

VWAP SINCE 19th november 7.330

Sell off coming bbbbbbbbbbbbbbbbbbbbbbbabyyyyyyyyyyyyyyyyy

Mon, 12/17/2012 - 10:42 | 3070979 apberusdisvet
apberusdisvet's picture


Boy!  Those politically massaged economic numbers must be working for the sheeple.

Mon, 12/17/2012 - 10:44 | 3070984 hugovanderbubble
hugovanderbubble's picture


BULL/BEAR Ratio at highs...

SI/OUT.Shs at lows....



Try with Marihuana now...


Pain Coming....

(Zalicus and Horizon Pharma)+ THLD

Mon, 12/17/2012 - 10:50 | 3070997 GMadScientist
GMadScientist's picture

You really think they'll run to 20yr?!

Choomwagon, Forward!


Mon, 12/17/2012 - 10:48 | 3070991 edmondantes
edmondantes's picture

shows that being a muppet is an essential requirement for success in the present system

Mon, 12/17/2012 - 10:50 | 3071001 GMadScientist
GMadScientist's picture

true, just not your success.

Mon, 12/17/2012 - 10:51 | 3071002 slaughterer
slaughterer's picture

Bears are cornered now. 

Mon, 12/17/2012 - 10:52 | 3071003 sbenard
sbenard's picture

I stopped watching the Obamanomics Channel -- uh, CNBC -- about 4 years ago. It is just propaganda seeking to mislead -- even deceive -- all of us to lull us into a sense of false security while they undermine and destroy our freedom. They have successfully drugged most Americans into a materialistic torpor that will cost them their liberty in the end.

There is going to have to be a grand reset, and it will be more ugly than anyone can imagine. We can not, however, assume that the reset will bring back liberty. It rarely does!

Mon, 12/17/2012 - 11:58 | 3071173 Bastiat009
Bastiat009's picture

You're giving them too much credit. They're just a bunch of people trying to make a living. They have no agenda, they're just trying to sell airtime to the largest audience possible. It's all about style, substance doesn't matter anymore. Why would they care about what they say, they're still paid the same anyway. It's just a job.

Mon, 12/17/2012 - 10:54 | 3071009 TuPhat
TuPhat's picture

The chart is interesting and some charts can be informative, but the market is broken and charts have no predictive value at all.

Mon, 12/17/2012 - 10:55 | 3071014 Brokenarrow
Brokenarrow's picture

cnbc and their book talking "experts" have killed more people than Hitler, Stalin, PolPot, and Bin Ladne combined. Especially the naive and elderly. This morning tepper sent, at minimum, a thousand grandmas and pas, who are so afraid and desperate, to their financial death. They are far more evil than the kid in CT. How they sleep at night I will never know. I hope to see them swing from the gallows in the future.

Mon, 12/17/2012 - 11:48 | 3071147 wisefool
wisefool's picture

Human secularist religions like Keynesianism have holy wars too. Much more deadly without the war weariness that can not be suppressed out of traditional religions/spirituality. CNBC is just a church for that religion, they do not deserve our attention or action.

Bloomberg on the other hand has been letting way too much truth get out. They had a week long study called "Alpha Stars" recently. The finale was two of the most important money managers in the USA. One guy was goldman sacs. the other was some type of independant manager.

They basically put up a chart showing that money mangers do not do any better or worse than the index. They also waxed philosophical about why they are paid so much inlight of this fact.


Mon, 12/17/2012 - 10:57 | 3071021 slackrabbit
slackrabbit's picture


lots of words, no sentances...

Mon, 12/17/2012 - 12:54 | 3071322 nope-1004
nope-1004's picture

For once, someone stuttered and stammered more than Joe in the morning......  lol

Mon, 12/17/2012 - 11:40 | 3071124 imaginalis
imaginalis's picture

What a muppet

Mon, 12/17/2012 - 12:53 | 3071319 q99x2
q99x2's picture

Fed lost its authority because Fed will not go much beyond dow 13,000 or where it already is. The manipulation by the FED has been to support pensions up to this point time and again. There is no truth to Tepper and GS this time round. He's a bald headed pervert from Pittsburgh.fuckville where the Night of the Living Dead was filmed.

Mon, 12/17/2012 - 14:29 | 3071655 tnquake
tnquake's picture

Thought Tipper was interviewing to run Ben's printing press!

<CTL> P, <CTL> P

Lost another hour of my life watching this crap!

Mon, 12/17/2012 - 16:30 | 3072409 steelhead23
steelhead23's picture

OK Tyler, Why did you post that interview?  Tepper is a Bernankophile.  He believes that the Fed's QE has been effective and will continue to be effective, not just on WS but on Main Street.  Ho-hum.  The only interesting aspect of that interview was that the CNBC interviewers actually did provide a little push-back - unemployment remains stubornly high, growth has been sluggish - which I find a tad heartening as these same folks are often cheerleaders rather than journalists.

Mon, 12/17/2012 - 17:26 | 3072648 cobra1650
cobra1650's picture

20% unemployment and structurally fucked economy....this guy is a pole-smoking frontrunner.  I forecast he will grow a beard in 2013 to offset the chrome dome.

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