Legendary hedge fund manager John Paulson gave a rare interview with a Paris-based financial newspaper over the weekend.
“In my eyes, the major risk for the American recovery is the stagnation of the residential real estate market,” Paulson said, according to Les Echos. “It will be difficult to have a rebound in real estate prices this year.”
Paulson also reiterated his bullishness for gold due to inflationary expectations going forward.
With inflationary risks in the next three to five years and the instability of the euro, gold provides protection against currency devaluation, he said.
In short, he believes that money printing will ultimately lead to a good deal of inflation. He is convinced that gold will be a very good way to protect himself from the eventuality of currency debasement.
Previously Paulson keenly observed that if one thinks about gold in a three or five-year time horizon (instead of hour-to-hour/day-to-day/week-to-week), the probability increases of gold being higher over time.