Don't Fear the Taper, Stocks Still Strong: Tepper

Adam Jeffery | CNBC

David Tepper. president and founder of Appaloosa Management

Any Federal Reserve money-tightening will come due to a stronger economy and shouldn't scare investors, hedge fund manager David Tepper told CNBC Friday.

As Wall Street digests statements earlier this week from central bank Chairman Ben Bernanke, Tepper—the widely watched head of Appaloosa Management—said the news is actually good.

(Read More: Here's Who Wins and Who Loses From Fed Taper Talk)

"All the concern in the markets is because the Fed sees the economy stronger in the future," he said in a statement.

He made strongly bullish comments during a CNBC appearance May 14 and cautioned that a tapering of asset purchases was on the way.

(Read More: It's a 'My Cousin Vinny' Market, Bullish Tepper Says)

Markets delved into a fit of panic-selling Wednesday and Thursday, after the Fed's Open Market Committee meeting concluded this week with remarks from Bernanke that caused fears the days of free money and high liquidity are over.

Thursday was the worst day of the year as part of a run that has seen the S&P 500 fall nearly 5 percent from its May 21 closing high.

Bernanke indicated that if the economic data continue to improve, the Fed probably will begin pulling back on its $85 billion a month bond-buying program later this year and wrap it up in 2014.

(Read More: Here's the Real Reason the Fed Will Taper QE)

Markets have been highly dependent on Fed liquidity, rising about 140 percent since the March 2009 lows while the central bank has expanded its balance sheet past $3.4 trillion.

Bond markets quaked as well this week, with the 10-year Treasury note yield climbing all the way past 2.4 percent.

But Tepper said the future landscape for stocks continues to look inviting.

"The bond (market) is concerned about the strength," he said. "A 10 (year) bond at 2.4 or even at 3 (percent) if it's because of strength is ultimately healthy. I obviously thought they should start to taper. Bottom line when the dust settles only one place to be STOCKS. "

—By CNBC's Jeff Cox. Follow him @JeffCoxCNBCcom on Twitter.