Paulson: Even Odds On Euro Collapse

Jul 24 2012 | 11:43am ET

John Paulson took a misery loves company approach to his second-quarter conference call with investors, using it to cast doubt on the future of the eurozone.

The Paulson & Co. founder said that there is a 50% chance that an event leading to the breakup of the euro will occur within two years. And the collapse could come in as soon as three months, he added.

It is not the first time that Paulson has called into question the euro's future. In February, he warned that Greece could default by March—an eventuality that was avoided by European policymakers. Paulson also called the euro "structurally flawed."

The upshot, according to Paulson, is that sovereign yield spreads will likely rise.

Paulson is certainly hoping his own funds rise with them: Most are down double-digits this year after double-digit declines last year. Paulson told investors that he has reduced the net exposure of some of his funds.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.