As the 2024 U.S. Presidential election approaches, the financial community is abuzz with speculation on how each candidate might impact the markets. Billionaire hedge fund manager John Paulson has issued a stark warning about the potential consequences of a Kamala Harris presidency, threatening to withdraw his investments if she wins the election.
In a Tuesday interview on Fox Business’ “The Claman Countdown,” Paulson stated unequivocally, “It depends on the policy; if Harris is elected, I would pull my money from the market.” He elaborated that his strategy would involve moving his assets into cash and gold, citing concerns over market uncertainty stemming from Harris’s proposed policies.
Paulson criticized several of Harris’s campaign proposals, including the introduction of more centralized price controls and new government spending programs. He noted that the projected cost of these initiatives could exceed $1.7 trillion, raising significant concerns about their impact on economic stability. “The future of the U.S. economy and stock market depends on the winner of the race between former President Donald Trump and current Vice President Kamala Harris,” Paulson emphasized.
Harris has outlined several key policy initiatives for her first 100 days in office, such as $25,000 in federal down payment assistance for first-time homebuyers and lower- and middle-income families, as well as measures to address grocery price inflation and curb price gouging. Additionally, she has proposed a controversial tax on unrealized gains, which Paulson believes could trigger a significant market downturn. “If they implement a 25 percent tax on unrealized gains, it would lead to mass selling of stocks, bonds, homes, and art, potentially causing a market crash and a swift recession,” Paulson warned.
Paulson’s comments reflect his strong support for former President Trump and his disapproval of Harris’s economic plans. His position is consistent with his prior actions; he hosted a high-profile fundraiser at his Palm Beach estate in April, which raised over $50 million for Trump’s campaign.
Looking ahead, Paulson views the middle class as a decisive factor in the upcoming election. He argued that Trump’s policies were more beneficial to average Americans, citing a 6.5% increase in real wages during Trump’s tenure compared to the decline under President Biden due to high inflation. “The middle class is key for this election,” Paulson asserted. “The difficulties many Americans face with common expenses like rent and food are a direct result of the current administration’s policies.”
While Paulson acknowledges a recent easing in inflation, he advocates for further measures to reduce it, along with addressing the federal deficit and interest rates. “The important thing is to keep inflation down, which requires reducing the deficit and bringing down interest rates,” he concluded.
