Billionaire hedge fund manager says he would pull his money from the market if Harris wins election. John Paulson, a top fundraiser for Trump, says Harris’ policies would cause uncertainty in the markets.
Paulson: I’d go into cash and gold if Kamala Harris is elected
Hold onto your hats, folks, because John Paulson, the billionaire hedge fund manager and proud Trump fundraiser, has dropped a bombshell. He declared that should Vice President Harris snag the 1600 Pennsylvania Avenue address come election time, he’ll pull his money out of the market faster than you can say “economic policies.” Now, isn’t that a twist? Let’s dive into the whys and wherefores of this juicy financial drama.
John Paulson, who’s as famous in the hedge fund world as the Kardashians are in the reality TV circuit, didn’t mince words during his recent interview. He laid it out plainly: “It very much depends on who’s in the White House and who controls Congress,” Paulson said. “I’d be very concerned if Harris is elected and pursues the tax plans and other economic plans that she articulated.” Translation? Investors are in for one heck of a ride.
Paulson highlighted the stark contrast between Trump and Harris’ economic visions. Trump, like a financial Santa Claus, plans to extend the 2017 tax cuts. Meanwhile, Harris is waving goodbye to those tax cuts and saying hello to tax hikes! She proposes raising the corporate tax rate from 21% to 28% and the capital gains rate from 20% to 28%—and that’s not all.
Hold your martini glasses steady, because here comes the kicker. Harris wants a 25% tax on unrealized gains for individuals worth $100 million or more. Paulson has a dramatic prediction: If this is implemented, it would trigger mass selling of almost everything—stocks, bonds, homes, art—you name it. Cue the chaotic scenes from ‘Titanic.’
History lesson time. Claman, the interviewer, noted that some worried investors pulled their money out of the market when Barack Obama, Trump, and Joe Biden were elected, only to regret their snap decisions because the markets thrived anyway. Paulson, however, is unfazed, confident that the election’s outcome will dictate market performance this time around.
Then there’s this golden nugget from Paulson: “It depends on the policy,” he said. “I think if Harris were elected, I would pull my money from the market. I’d go into cash, and I’d go into gold because I think the uncertainty regarding the plans they outlined would create a lot of uncertainty in the markets and likely lower markets.” So basically, Paulson is ready to grab his treasure chest and head for the gold if things don’t go his way.
When pressed for more clarity, Paulson doubled down, asserting he’d definitely pull out of his liquid equities if Harris sweeps into the White House. Now that’s commitment to a financial philosophy if I’ve ever seen one! So, dear reader, what’s your strategy going to be?
