John Paulson, the hedge fund manager who raked in about $20 billion in profits between 2007 and early 2009 wagering against the housing market and financial companies, is now bullish on the U.S. housing sector and the economy.
During a conference call with investors Wednesday, Paulson said he was no longer concerned about the potential of a double-dip recession.
MW: “I’m not concerned about that at all today,” he added. It’s more likely there could be a V-shaped recovery, Paulson continued. House prices have stabilized and could climb 8% to 10% nationwide in 2011, Paulson said. 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.