A prominent hedge fund billionaire is warning investors that he believes the stock market will severely crash if Democrat nominee Kamala Harris wins the election in November.
John Paulson, the CEO and founder of Paulson and Co., is urging investors to prepare to sell their stock market shares in case Harris wins.
Should Harris beat President Donald Trump, Paulson believes people should protect their investments by moving their money into gold and cash.
Paulson, one of the most prominent names in high finance, is perhaps best known for making billions by betting against the subprime mortgage lending market in 2007.
He issued the warning about Harris’s “Kamalanomics” policies during an appearance on Fox Business’s “Claman Countdown.”
Paulson told Liz Claman that he would be “very concerned” if Harris wins the White House and pursues the tax plans and economic policies she’s outlined.
Harris has floated several radical economic policies on the campaign trail.
Those policies include raising the corporate tax rate from 21 to 28 percent, taxing unrealized capital gains, and banning grocery “price gouging.”
“I think the uncertainty regarding the plans they outlined would create a lot of uncertainty in the markets and likely lower markets,” Paulson said of Harris’s economic plans.
Paulson said the proposed tax on unrealized capital gains on individuals making $100 million or more was particularly troubling.
The move “would cause mass selling of almost everything – stocks, bonds, homes, art – I think it would result in a crash in the markets and an immediate, pretty quick recession,” he noted.
When Claman pressed him, Paulson reiterated that he would pull liquid assets from the stock market if Harris were to win.
He said he would take the money from the market and go heavy into gold.
“I think if Harris was elected, I would pull my money from the market,” he explained.
“I’d go into cash, and I’d go into gold.”
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Paulson is a prominent fundraiser for the Trump campaign.
There is speculation that he would be a candidate for Secretary of the Treasury in the next Trump administration.
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