The Boeing Company had finalized their $5.3 billion agreement with the U.S Navy to create 124 F/A-18 fighter jets, as well as electronic attack planes. The deal extends for four years, which is expected to make over $600 million savings.

Boeing and the Pentagon announced the deal on Tuesday, which requires the Boeing Company to deliver 66 F/A-18 “Super Hornet” fighters and 58 EA-18G airframes that are intended for electronic attacks to the U.S Navy from year 2012 to 2015.

According to the Pentagon, the multiyear deal was based on a fixed-price terms with additional incentive fees. Since it is a fixed-price term, the government will not be charged with extra fee if there are any cost overruns.

Boeing also made a $249 million contract for their F/A-18 fighters to have logistics support. These F/A 18 fighter jets operate worldwide including the progressing missions in Afghanistan.

Since the agreement will run for four years, this will save them more than $600 million in costs, for they would be able to buy the materials in bulk and allow their suppliers to plan ahead of time. This will make the production more efficient as opposed to a single-year contract.

The agreement is based on a $42.7 million price per plane, but the engine and other government-furnished equipment is not included in the price.

Boeing is the largest aircraft manufacturer around the world and this contract is the third multiyear agreement that Boeing Company has signed with the U.S Navy for their F/A-18 fighter jets.

David Tepper, the Hedge fund manager and founder of Appaloosa Management, is loading up on stocks this year as he claims that stock market will soon increase.

Tepper made a shocking $4 billion dollars in 2009 and is now the 258^th richest person in the whole world. Even Carnegie Mellon’s business school was named after him. His specialty is investing in distressed companies.

September 24, during his CNBC interview, Tepper proclaimed that stocks are perched to go up no matter what happens in the economy. This is because of the second round of QE or quantitative easing.

According to him, whether or not the economy does well in the coming years, stocks will remain up that will subsequently increase bonds and gold.

Tepper’s firm acquired distressed financial stocks, including the Bank of America common stock at $3 per share. He purchased bank stocks when they were at their lowest in the early 2009. During this time, many investors were afraid to invest on banks as they might be nationalized.

However, Tepper believed buying bank financial stocks is easy. Now, these stocks have brought his hedge-fund firm $7 billion in earnings.

Tepper had been investing in companies involved in technology, paper products, as well as health care. His biggest investment now involves a health care company such as WellPoint. Others include Hewlett-Packard and Applied Materials with several million shares.

Business owners and stock investors are yet to see if David Tepper’s forecast will come true in the fierce trade and business industry.