He Predicted 2010 Correctly... And 2011 Is Going To Be Bad

David Tepper was leading the bull rally in 2010, but now he is taking looking to get off the bandwagon. In an interview with the New York Post, Tepper said that 2011 will be "harder and not without risk," advising investors to look into equities for the best returns.

Tepper is the founder of Appaloosa Management, a $15 billion hedge fund. Tepper is famous for his positive commentary in 2010 after the US government stepped up the plate with large stimulus programs. Tepper believed that these actions nearly guaranteed the rise of the equities markets in 2010, and he was proven correct.

Tepper accurately predicted that the S&P 500 would close 2010 up 13%. His forecast came true. He predicts a much more difficult 2011, and this, understandably, has many investors worried. Tepper is scheduled to appear on CNBC tomorrow: perhaps to offer reassurances, or perhaps to offer more dismal prophecies.

As of today, the S&P 500 has rallied 2% in 2011.