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John Paulson’s Thesis on the Market for 2013

January 24, 2013 | About:
Guru John Paulson joined former U.S. Secretary of the Treasury, Bob Rubin and Washington Post Columnist, Sebastian Mallaby on Tuesday, Jan. 22 at the Manhattan nonprofit community and cultural center, 92nd Street Y, to speak on how to get Washington and U.S. economy moving again. Titled “2013 and Beyond,” Paulson gave a presentation disclosing his outlook for this year. Below is a summary, according to CNBC, of Paulson’s main points during the presentation.

Housing

Paulson thinks the U.S. economic recovery will be led by the housing market recovery. To him, we have seen a strong recovery in the market thus far and it is likely to continue. The number of houses out in the market is at an all-time low – a 10-year low to be exact – and drives the appeal in buying houses right now. It also places a stress on building efforts, emphasizing the need to build more new homes.

Energy

Paulson is seeing a positive turnaround in the U.S. energy market. In particular, he sees petrochemicals and energy-related stocks benefiting.

Credit

Paulson sees the world of credit cards, auto loans and mortgages picking up. While he believes of its improvement, he is less bullish in credit.

Gold

Paulson continues to feel good about gold, however, he thinks it will take at least three to five years to play out. This is still evident in his portfolio, seeing that Anglogold Ashanti Ltd. (AU) and SPDR Gold Trust ETF (GLD) remains his top two holdings.

He said ever since he got into gold in the Spring of 2009, it has returned about 80 percent.

Source: CNBC’s Squawk Box, http://www.cnbc.com/id/100400853

About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

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