This has been a good year for stocks and bonds, with both the S&P 500 and Dow Jones Industrial Average hitting record highs yet again this week.
But trouble might be looming ahead, hedge fund luminary David Tepper, founder of Appaloosa Management, told
CNBC in an email. Next year is looking like 1999, when the stock market reached a peak before tumbling in early 2000, he said.
"This year rhymes with 1998. Russia goes bad, easing coming from Europe. Sets up 1999 . . . [oops] I mean 2015."
Tepper said he's not predicting that the markets will top out in 2015. But "you have to be aware of the possibility for some sort of overvaluation of the markets. And they are fair value now."
The S&P 500 had a trailing price-earnings ratio of 19.48 Friday, up from 18.57 a year ago, according to Birinyi Associates.
"Worldwide money [was] made too easy for where U.S. fundamentals were in both late 1998 and 2014," Tepper explained.
The Federal Reserve has kept its federal funds rate target at a record low of zero to 0.25 percent for six years.
James Rickards, senior global strategist at West Shore Funds and author of "The Death of Money: The Coming Collapse of the International Monetary System," is concerned about the stock market too.
"It just feels like a bubble to me," he told
Kitco News. "I’m not saying it couldn’t go up, they may go up more. But when they come down, they’ll come down hard and fast, and I don’t want to be around when that happens."
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