Billionaire hedge fund manager John Paulson has threatened to remove his money from US markets if Vice President Kamala Harris defeats former President Donald Trump in the upcoming presidential election. Speaking on Fox Business’s “The Claman Countdown”, Paulson, founder of Paulson & Co and a major Trump donor, stated that he would sell liquid equities if Harris secures victory on November 5th. The hedge fund manager also hosted a record-breaking fundraiser for the Trump campaign in Palm Beach, Florida back in April which raised over $50 million.
Paulson’s threat is predicated on policies outlined by Harris’s campaign that focus on more centralized price controls and new government spending programs. Economists have estimated these plans to cost over $1.7 trillion. The billionaire hedge fund manager has expressed concern about the potential impact of Harris’s tax plans and other economic policies on markets, claiming that they could cause mass selling of various assets and potentially trigger a market crash followed by a quick recession.
The American stock market and economy are at a crucial crossroads ahead of the November 5th general election, according to Paulson, who insists that the winner will significantly influence the future of the US economy. He emphasizes the importance of considering middle-class voters in this context, as they hold the key to determining the outcome of the presidential race.
Paulson argues that Trump’s policies have been more beneficial for average Americans, citing a 6.5% growth in real wages during his administration compared to a decline under President Biden due to high inflation. He also expressed concern about inflation and suggested measures to keep it down, such as bringing down the deficit, reducing inflation, and lowering interest rates.
In contrast to Harris’s proposal for federal down payment assistance and her plan to fix prices on groceries, House Speaker Mike Johnson has criticized the Vice President’s economic plan, likening it to “Oprah (Winfrey) is running for president.” The Republican agenda, if GOP were to win back control of Congress and the White House, would focus on maintaining tax cuts to support job creation and doubling the guaranteed deduction alongside a strong child tax credit.
