Billionaire hedge fund manager John Paulson has warned that he will pull his money out of US markets if Vice President Kamala Harris wins November's presidential election against former President Donald Trump.
The Paulson & Company founder and megadonor to President Trump made the shocking revelation during an appearance on Fox Business' “The Cramer Countdown” on Tuesday.
“It depends on the policies. If Harris is elected, I would pull my money out of the market,” Paulson said. “I would put it in cash and gold because I think the uncertainty about the plans they put out would create a lot of uncertainty in the market and probably send it lower.”
Paulson cited Harris' campaign platform that focuses on more centralized price controls and new government spending plans.
Economists estimate the plan could cost more than $1.7 trillion.
The 64-year-old investor argued that the future of the US stock market and economy depends on the winner of the general election on November 5th.
“A lot will depend on who's in the White House and who controls Congress,” Paulson said. “I would be very concerned if Harris were elected and she pursued her stated tax reform and other economic plans.”
“If they were to impose a 25 percent tax on unrealized gains, it would cause a massive sell-off of pretty much everything: stocks, bonds, homes, art. I think it would cause a market crash and a pretty rapid recession.”
Paulson, who famously made a huge profit betting on the subprime mortgage crisis in 2007, backed up his threat by acknowledging that he would sell liquid stocks if the vice president wins the Nov. 5 election.
The hedge fund manager hosted a fundraiser for the Trump campaign in Palm Beach, Florida, in April, which raised more than $50 million, breaking the fundraising record for a single event.
Though Republican megadonors attended the record-breaking event, Paulson believes the 2024 presidential election depends on winning for the middle class.
“I think this election is going to be about the middle class,” Paulson said, “and who's going to do better for the middle class. If you look at the facts, Trump's policies are doing better for the average American.”
“During his four years in office, average real wages increased by about 6.5 percent,” he argued. “Under Biden's administration, real wages are lower than when he took office due to higher inflation.”
“So many mid-level[class] Americans are struggling with everyday expenses like rent and food.”
Although Paulson believes inflation is falling, there is still more that can be done to curb it.
“The key is to get it under control, and to do that we need to reduce the budget deficit, reduce inflation and lower interest rates.”
House Speaker Mike Johnson criticized Kamala's economic plan as being “like Oprah running for president.”
“President Trump has famously referred to Candidate Kamala Harris as 'Comrade' and now she wants to take it to a whole different level,” the House Speaker said.
In addition to her controversial plan to freeze grocery prices during her first 100 days in office, Harris will provide $25,000 in federal downpayment assistance to first-time homebuyers and low- and moderate-income families with children who have paid their rent on time for at least two years.
Johnson pushed back against the vice president's plan, unveiling a “very aggressive” plan for the first 100 days if Republicans regain control of Congress and the White House.
“We will continue these cuts, as well as double the guaranteed tax credit and implement a stronger child tax credit, to help create jobs,” he promised.
“But unlike Democratic proposals, we will ensure that our tax policy respects the dignity of work and doesn't pay people more for being out of the workforce.”
