Hedge fund billionaire John Paulson, a major Trump fundraiser, said on Tuesday he would pull money out of the market if Vice President Harris wins this fall's presidential election, saying her economic policies would spook investors.
The founder of Paulson & Co., who made a profit by shorting stocks during the 2008 U.S. subprime mortgage crisis and is known as the "God of Short Selling on Wall Street" and "No. 1 Hedge Funder," participated in a Fox Business Channel program, where the host asked him what he thought the next big bet would be.
Paulson responded: "Well, I think a lot of it depends on who's in the White House and who controls Congress. If Harris is elected and pursues the tax plan and other economic plans that she has outlined, I would be very concerned."
Paulson said in an interview that former U.S. President Trump and Harris had very different economic plans, noting that Trump wanted to extend the 2017 tax cuts implemented during his term, while Harris wanted to let them expire.
He also noted that Harris has proposed raising the corporate tax rate to 28% from 21% and wants to increase the capital gains tax rate to 28% from 20%.
The billionaire pointed to Harris' proposal to impose a 25% unrealized gains tax on individuals with income above $100 million, predicting that if implemented, "almost everything - stocks, bonds, houses, art - would be sold off in a massive way, and I think it would cause a market crash and a pretty quick recession right away."
Moderator Liz Claman pointed out that some people had also been concerned about the policies of previous presidents (i.e. Obama, Trump, and Biden) and pulled money out of the market after they were elected, which turned out to be a big mistake as the market continued to perform well. Claman asked him if he was ready to take that risk.
“It depends on the policy,” Paulsen said. “I think if Harris gets elected, I would pull money out of the market. I would embrace cash and buy gold because I think the uncertainty of the plan that they have outlined is going to create a lot of uncertainty in the market and will likely cause the market to move lower.”
Pressed by Claman, Paulson reiterated that he would sell his liquid holdings if Harris won the White House.
The article is forwarded from: Jinshi Data
