Contrarian Paulson likes stocks, housing

John Paulson is known for a huge contrarian bet, the call that housing was doomed. It made him incredibly wealthy.

The New York hedge fund manager is now advocating another tack against the prevailing winds in the markets: Sell bonds, and buy stocks. Oh, and while you're at it, grab a house or two as well. (He's also big on gold but that's hardly running against the current.)

In a talk at New York's University Club, he made the call and said some of his best ideas are blue-chips with dividends that look better than low-yielding bonds. He pointed to Johnson & Johnson and Coca Cola . He's also bullish on financials like Bank of America , Suntrust Banks and Regions Financial .

Mr. Paulson's issue with bonds isn't just that they are pricey and low yielding, but that in his view inflation is going to surge and hammer the value of fixed-income securities.

And perhaps most interestingly, he's downright exuberant about the housing market.

"If you don't own a home buy one," Mr. Paulson reportedly recommended." 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."