John Paulson, the hedge fund manager who made billions by calling the U.S. housing market plunge, now sees good times ahead for U.S. home prices and corporate profits. And he says the country is in the midst of a strong V-shaped economic recovery.

According to CNBC, Paulson has told investors he expects housing prices to rise 3% to 5% in 2010 and another 8% to 12% in 2011. He says that homes are the most affordable they’ve been in 50 years, and that residential real estate is 60% more affordable than it was at the housing bubble’s peak.

Paulson “also sees buying opportunities in U.S. and European equities, even though the consensus about Europe is generally downbeat,” CNBC reports, adding that Paulson predicts “very strong” corporate earnings growth in the months ahead. And his fears of a double-dip recession for the U.S. have sharply decreased since the start of 2010.