Stocks may be at risk as the Fed's rate hikes and bond disposals squeeze valuations, hedge-fund billionaire David Tepper says

• David Tepper expects stock valuations to fall due to interest rates and quantitative tightening.
• The Appaloosa boss says that financial conditions have worsened so valuations must drop too.
• The Fed's rate hikes and efforts to cut its balance sheet mark a new era for markets, Tepper says.

Investors should expect stocks to command lower valuations than in past years, as financial conditions are a lot tighter today, David Tepper says.

"It's not that complicated right now," the billionaire hedge fund manager told CNBC's Scott Wapner on Friday. "You're just not in QE times anymore. You're in the QT era. It's a higher rate environment."