Billionaire hedge fund manager John Paulson has expressed his concerns about the economic policies of Vice President Kamala Harris, warning that he would withdraw his investments from the stock market if she were to win the presidential election. In an interview with Fox Business host Liz Claman, Paulson, who founded Paulson & Co., expressed his skepticism about Harris’s plans to raise the corporate tax rate and capital gains rate.
Paulson noted that the Biden-Harris administration’s proposed tax policies would mark a significant departure from the Trump administration’s approach. “The difference between the Trump administration and Harris is very different,” he explained. “Trump wants to extend the current tax policy, which was implemented in 2017, while the Biden-Harris group wants to change that.”
When asked about his investment strategy, Paulson said that it would depend on who occupies the White House. “I’d be very concerned if Harris is elected and pursues the tax plans and other economic plans that she articulated,” he said. “If they implement a 25 percent tax on unrealized gains, it would cause mass selling of almost everything, including stocks, bonds, homes, and art. I think it would result in a crash in the markets and a quick recession.”
Paulson acknowledged that investors have pulled their money out of the stock market during previous administrations, only to see the markets recover. However, he believes that Harris’s policies would create a unique level of uncertainty that would justify withdrawing his investments. “I think if Harris was elected, I would pull my money from the market,” he 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.”
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