Hedge fund billionaire and prominent Trump fundraiser John Paulson announced on Tuesday that he would withdraw his investments from the stock market if Vice President Kamala Harris wins the upcoming presidential election.
Paulson, the founder of Paulson & Co. and known for his profitable bet against the subprime mortgage crisis in 2007, expressed concerns over Harris’ proposed economic policies and their potential impact on investors.
During an interview on FOX Business’ The Claman Countdown, host Liz Claman asked Paulson about the next big financial move similar to his 2007 subprime bet. Paulson responded by saying that the outcome of the presidential election would be a determining factor.
“Well, I would say it very much depends on who’s in the White House and who controls Congress,” Paulson stated. “I’d be very concerned if Harris is elected and pursues the tax plans and other economic plans that she articulated.”
Paulson compared the economic policies of Harris and former President Donald Trump, highlighting the stark differences. He pointed out that Trump seeks to extend the 2017 tax cuts, while Harris intends to let them expire.
Additionally, Harris has proposed raising the corporate tax rate from 21% to 28% and increasing the capital gains tax from 20% to 28%.
Paulson also cited Harris’ proposal for a 25% tax on unrealized gains for individuals earning $100 million or more as a major point of concern. He warned that implementing such a policy could lead to widespread sell-offs of assets, including stocks, bonds, homes, and art, potentially resulting in a market crash and triggering a rapid recession.
“It depends on the policy,” Paulson said. “I think if Harris was 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.”
When pressed by Claman for more details, Paulson reiterated that he would sell the liquid equities he currently holds if Harris wins the White House, emphasizing his concerns over the impact her economic policies could have on the market.
