Yes, It is time to buy and buy again!

Investment ideas are cyclical. They go dormant for a while, and then revive, like fashions or cicadas obeying their own curious rhythms. During the past few years, rare was the investment thinker who said you should buy a house.

Housing was in a bubble that was deflating, but the investment seasons turn. Today some smart investors are once again saying you should a buy house. John Paulson is one of them.

You may know him as the man who turned the greatest trade of all time. Betting against the housing market, he netted a cool billion dollars for himself in 2007. One fund he managed rose 590% that year. Today, he is one of the richest men in America.

His advice today is very different. “If you don’t own a home, buy one,” Paulson 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.”

That’s a strong endorsement. It sounds similar to the advice another investor gave his audience in 1971, at the dawn of one of America’s biggest housing bull markets. 

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