Even though John Paulson hasn’t a good run this year, so far, he still likes stocks. And Paulson, famous for his huge winning bet against sub-prime mortgages back in 2007, still likes stock even though the stock market remains fragile what with the U.S. in a recession and Europe in a crisis.
Plus, his own hedge fund has taken some big hits of late, suffering heavy losses. His fund is down big with a huge loss on Chinese timber company Sino-Forest and then his positions in Bank of American and Hewlett Packard haven’t been winners to say the least. Despite all of this, Paulson wants to keep buying stocks.
“Price-earnings ratios are at historic lows. This has created many buying opportunities where companies are trading at extremely low valuations irrespective of strong performance.”