John Paulson Finally Bullish on Housing?

John Paulson, whose multi-billion dollar hedge fund Paulson & Co. famously profited from the meltdown in the subprime market is now bullish on the housing market. Yes, this is the same Paulson & Co. hedge fund which keeps coming up in the Goldman Sachs investigation as the hedge fund which was not revealed to other parties to be the firm shorting these CDOs.

Paulson believes housing prices will rise 3-5% in 2010 and 8-12% in 2011. Of course, given the recent price stabilization across the national markets, this is not that grandiose of a prediction. It certainly doesn't rival his brazen decision in the middle of the decade to heavily short the mortgage market while 99% of other investors were still clueless. In any case, investors might do well to listen to Paulson. He has been bullish on gold in 2010. So far gold is up about 10% so far in 2010.