Hedge fund honcho David Tepper is rejecting arguments that stocks are overvalued and believes there are still plenty of opportunities in the market.
The head of Appaloosa Management, a long-time bull, said the latest leg up for the market has not changed his position.
"Any comparisons to past overheated markets are ridiculous," he told CNBC's Scott Wapner in a telephone interview Tuesday. "Look at where multiples and rates were in 1999. I'm not saying stocks are screaming cheap, but you're nowhere near an overheated market."
Tepper's comments came after the latest Bank of America Merrill Lynch Fund Manager Survey reported a historic high for the belief that the market is overvalued. The S&P 500 currently trades around 17.4 times expected earnings over the next 12 months, well ahead of the 15.4 average over the past five years and the 10-year average of 14, according to FactSet.
While the market looks expensive by that conventional measure, Tepper believes the state of the global economy supports a higher multiple.
"Because world growth will continue to be good, earnings will be better and stocks are relatively cheap to interest rates," he said.
Rising rates would be considered a danger, but he said that increase would have to be substantial before denting the market.