Paulson: Buy a House -- and then Buy Another

Hedge fund guru John Paulson is continuing to bet on big-time inflation hitting the U.S., and as a result is keying on equities, gold, and real estate.

Forbes’ Robert Lenzner reports that Paulson, speaking at the University Club in New York, said double-digit inflation will hit by 2012, pounding the bond market and strengthening equities. Among the stocks he likes: Johnson & Johnson, Citigroup, and Coca-Cola.

Paulson also sounded very bullish on housing. “If you don’t own a home buy one,” he said. “If you  own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.” He said people should issue 30-year mortgages to buy a home as “your debt and interest payments get locked in at record lows, while the price of your home will rise.”

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