Paulson Still Bullish on U.S., But Hates This Market...
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What's that, John Paulson? You think Greece is going down the crapper? Do tell!
Hedge fund titan John Paulson is famously known for scoring a big (read: enormous x 10) win during the housing market fallout in 2007. Though he had a rough 2011 by betting on a recovery that just didn't materialize, investors and traders still listen to what he says.
With the latest quarterly filings, Paulson issued a shareholder letter. In the letter, he said the euro was "structurally flawed" and will eventually fall apart. Triggering this catastrophe is Greece, which Paulson thinks will eventually default. But how big of a mess could Greece really be, Paulson? And isn't much of that already priced into the markets?
No, Paulson stated, a default in Greece could be a bigger shock to the system than the Lehman failure.
Greece isn't new news; two-years ago European leaders pledged to help avert a disaster in the struggling country. That panned out real well.
Paulson is still positive on the U.S. market, saying, "...we have seen a reasonable recovery in the U.S. with leading indicators in early 2012 trending positive and equity valuations well below historical norms..." but European issues continue to override the positives.
Hedge fund titan John Paulson is famously known for scoring a big (read: enormous x 10) win during the housing market fallout in 2007. Though he had a rough 2011 by betting on a recovery that just didn't materialize, investors and traders still listen to what he says.
With the latest quarterly filings, Paulson issued a shareholder letter. In the letter, he said the euro was "structurally flawed" and will eventually fall apart. Triggering this catastrophe is Greece, which Paulson thinks will eventually default. But how big of a mess could Greece really be, Paulson? And isn't much of that already priced into the markets?
No, Paulson stated, a default in Greece could be a bigger shock to the system than the Lehman failure.
Greece isn't new news; two-years ago European leaders pledged to help avert a disaster in the struggling country. That panned out real well.
Paulson is still positive on the U.S. market, saying, "...we have seen a reasonable recovery in the U.S. with leading indicators in early 2012 trending positive and equity valuations well below historical norms..." but European issues continue to override the positives.
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