Paulson Sees $4,000 Gold and Says "Buy a Home"
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Speaking at New York's University Club last week, billionaire hedge fund manager John Paulson said that he sees double-digit inflation coming by 2012, which will kill the bond market and restore strength to equities and gold.
Paulson told the standing-room only crowd that gold could hit $2,400 to $4,000 per ounce, adding that 80 percent of his assets are in gold. He added that he continues to be bullish on the housing market saying that home prices are great and that this is the best time in 50 years to buy a home.
"If you don't own a home buy one," said Paulson. "If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home."
Paulson warned investors to sell bonds saying that the run up is over. He sees attraction in equities with earnings yields of 7 percent to 8 percent compared a meager 2.6 percent on 10-year Treasuries.
Paulson listed his favorite stocks, including Johnson & Johnson (NYSE: JNJ) at a 3.8 percent yield; Pfizer Inc. (NYSE: PFE), 4 percent yield, as well as Coca-Cola Co. (NYSE: KO), Citigroup Inc. (NYSE: C), Bank of America Corp. (NYSE: BAC), SunTrust Banks Inc. (NYSE: STI) and Regions Financial Corp. (NYSE: RF).
Paulson sees 2 percent gross domestic product in the U.S. for 2011 and 2012, warning that the Federal Reserve’s plans for quantitative easing could result in double-digit inflation over the next few years.
Paulson told the standing-room only crowd that gold could hit $2,400 to $4,000 per ounce, adding that 80 percent of his assets are in gold. He added that he continues to be bullish on the housing market saying that home prices are great and that this is the best time in 50 years to buy a home.
"If you don't own a home buy one," said Paulson. "If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home."
Paulson warned investors to sell bonds saying that the run up is over. He sees attraction in equities with earnings yields of 7 percent to 8 percent compared a meager 2.6 percent on 10-year Treasuries.
Paulson listed his favorite stocks, including Johnson & Johnson (NYSE: JNJ) at a 3.8 percent yield; Pfizer Inc. (NYSE: PFE), 4 percent yield, as well as Coca-Cola Co. (NYSE: KO), Citigroup Inc. (NYSE: C), Bank of America Corp. (NYSE: BAC), SunTrust Banks Inc. (NYSE: STI) and Regions Financial Corp. (NYSE: RF).
Paulson sees 2 percent gross domestic product in the U.S. for 2011 and 2012, warning that the Federal Reserve’s plans for quantitative easing could result in double-digit inflation over the next few years.
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