You all saw $12 billion hedge fund manager, David Tepper, say a week ago on CNBC that he was bullish on stocks hedged with a rolling "Bernanke Put" on the economy. Now, according to the articles below, $30 billion hedge fund manager, John Paulson, during a speech at the University Club of New York, said buy stocks (based on earnings yield/10y spread), buy multiple houses, sell bonds, and gold could overshoot to $4,000 on double digit inflation and a lower US Dollar. See Paulson & Co.'s recent letter to investors from Zero Hedge. This is nothing new, Paulson and his book have been bullish on the economy since the bailouts. Did he talk about hedging positions during his speech? I guess that's what the Federal Reserve is for. So I guess socialized greed, for a lack of a better word, is good! Courtesy of freshly printed Federal Reserve Notes, laced with cocaine, yep. Don't forget about the E in P/E if the economy doesn't pick up (via David Rosenberg). If that's the case, equity put options and credit default swaps are just a mouse click and premium installment away.
John Paulson: Sell Bonds; Buy Stocks; Double Digit Inflation Coming - Robert Lenzner at Forbes.com
John Paulson Lecture: "Bonds Are Wrong, Stocks Are Right" - Zero Hedge
Gold Price Could Hit $4,000, Says Paulson - GoldAlert
John Paulson's Scary Speech: Double Digit Inflation By 2012, Gold At $4,000 - Business Insider