(Nicholas McEntyre’s article from the NEW YORK POST on 19 September 2024.)
Billionaire hedge fund manager John Paulson has
threatened to remove his money from the US markets if Vice President Kamala
Harris defeats former President Donald Trump in November’s presidential
election. The Paulson & Co. founder — also a Trump megadonor — made the
shocking revelation during an appearance on Fox Business on Tuesday.
“It depends on the policy, if Harris is elected I would pull my money from the market,” Paulson said. “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.”
Elon Musk, the world’s richest man and also a Trump
supporter, responded to Paulson’s promise by tweeting legendary investor Warren
Buffett was “already preparing for this outcome”. Buffett has increased cash
reserves at Berkshire Hathaway this year, although it’s not completely clear
why.
Paulson cited the policies Harris’ campaign laid out that would focus on more centralised price controls and new government spending programs were behind his fears. Economists have estimated the plans to cost over $1.7 trillion.
The future of the American stock market and economy
relies on the winner of the November 5 general election, the 64-year-old
investor insisted. “It very much depends on who is 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.”
“If they do implement a 25 per cent tax on
unrealised gains, that would cause mass selling of almost everything — stocks,
bonds, homes, art. I think it would cause a crash in the markets and a pretty
quick recession.”
Paulson, known for his lucrative bet against the
subprime mortgage in 2007, backed his threat by confirming he would sell his
liquid equities if the current Veep wins the election. The hedge fund manager
hosted a fundraiser for the Trump campaign in Palm Beach, Florida, in April
that raised over $50 million, breaking the single-event fundraising record.
While GOP megadonors attended the record-breaking
event, Paulson believes the 2024 Presidential election comes down to the middle
class. “I think the middle class is key for this election,” Paulson said. “And
who’s gonna do better for the middle class. When you look at the facts, the
Trump policy had come out better for the average American.”
“Under his administration of the four years,
average real wages grew about 6.5 per cent,” he claimed. “Under Biden, because
of the high inflation, real wages have declined from where they were when he
started. “That’s why so many middle [class] Americans are having so many
difficulties with common expenses like rent and food.”
Paulson believes inflation is coming down, but
there’s more that can be done to help it. “The important thing is keeping it
down and to do that you need to bring down the deficit, bring down inflation
and bring down the interest rates.”
