John Paulson Thinks The Stock Market Is 'Overreacting'

According to billionaire hedge fund manager John Paulson, the recent sell-off in the stock market may be unjustified and "overreacting."

The SPDR S&P 500 ETF Trust (NYSE: SPY) has lost more than 10 percent since the start of 2016.

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Reuters quoted Paulson as saying during a conference that there is a "disconnect between the performance of the stock market and the performance of many companies we've invested in." He added that companies are indeed "doing very well" but their stock prices certainly are not.

"In time that will sort itself out, but I think the market is sort of overreacting," Paulson was also quoted as saying.

Paulson also brushed off fears of a financial crisis and pointed out that financial institutions are in a better position today with "more liquidity and higher quality portfolios."