Hedge fund manager John Paulson held two conference calls over the last couple of days with investors, and most of the attention has been paid to what he said about the Goldman Sachs (GS) fraud charges.
For what it’s worth, he hasn’t been charged, but he’s been defensive anyway.
What’s interesting though is that the man who was famous for betting against the economy is now a snorting bull.
MarketWatch has the details.
“I’m not concerned about that at all today,” he said. It’s more likely there could be a V-shaped recovery, Paulson elaborated.
House prices have stabilised and could climb 8% to 10% nationwide in 2011, he added.
Corporate earnings are coming in ahead of expectations, the stock market is stronger and there’s a “vibrant” credit market. With the “final leg” of a rising housing market, “the outlook for 2011 could be very strong,” Paulson said.
Paulson has been betting on reflation and financials for a while — and doing quite well at it — but these are new comments in terms of feeling good about residential housing, corporate profits, and the general sustainability of the comeback.
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