Hedge fund manager David Tepper is right to be nervous about this market, investment manager Michael Farr told CNBC Thursday.
"We're at all-time highs on the markets. We went up 32 percent last year for the S&P 500," he said.
Farr, author of "Restoring Our American Dream: The Best Investment" and a CNBC contributor, told "Power Lunch" he's been urging caution for quite a while. Valuations are full, he said, and the economy is being fueled by the Federal Reserve's stimulus.
"The consumer's not driving this economy. It's inflated, it's staying up," he added. "The economic data aren't horrible but I think caution is definitely warranted and it's where I've been for a while in my multi-national blue chips."
Farr's call for caution echoed comments by Tepper, head of Appaloosa Management, who voiced his concerns Wednesday at SkyBridge Capital's SALT 2014 conference in Las Vegas.
"I'm not saying go short, I'm just saying don't be too fricking long right now," Tepper told the audience. "I am nervous. It's nervous time."
The closely watched hedge fund manager told CNBC he has reduced his equity exposure to about 60 percent from 100 percent six months ago.