David Tepper (David Tepper), founder of Appaloosa Management, said investors engaged in speculative games in the market should be extra careful.

“In 1999, 'Carnival Party.com 'became short, but now it's 'retail investor assembly.inc'. When the internet bubble burst in 1999, this situation had no good results. I've experienced and done this kind of thing. They are all old scars.” Tepper said on Thursday.

The billionaire investor continued to stress that investors should act with caution in the face of frenzied trading activity and high market valuations. They can take a sharp turn when things take a turn.

The influence of retail investors — inGame StationMost obvious in (GameStop) — it has attracted the attention of Wall Street in recent days and has become a new type of trader in the midst of the pandemic.

Retail investors force hedge funds to rush to make up for losses by pouring in stocks staked on by hedge funds, which usually pushes up stocks. Gaming Station and AMC Cinema Line are among the stocks recently favored by retail investors. The former has risen by more than 1700% this year, and the AMC Cinema Line's stock price has also soared by more than 800% this year.

In early January, Tepper said that as the COVID-19 vaccine continues to be promoted, his view of the market is more positive. Furthermore, with the support of the Fed's continued easing policy, he said it is difficult to compete with the current market.

In February of last year, Tepper issued a warning about the impact of the COVID-19 pandemic on stocks. It turned out to be prescient.

On February 1, before US stocks began to plummet, Tepper said he had become cautious in the market due to this virus. “You have to be careful because the virus could be a game changer. So you just have to be careful,” Tepper said.