Billionaire hedge fund manager John Paulson has shocked the financial world with a bold statement. During an appearance on Fox Business’ “The Claman Countdown,” the Paulson & Co. founder hinted. on an exit strategy from US markets if Vice President Kamala Harris wins the 2024 presidential election.
“If Harris is elected, I would take my money out of the market,” Paulson said. He explained his rationale: uncertainty. “I would go for cash and go for gold because I think the uncertainty over the plans they have outlined would create a lot of turbulence in the markets and would probably reduce them.”
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It’s a bold statement from a man known for turning heads—and making billions by correctly predicting the 2007 housing crisis.
Paulson, a major Trump donor, does not make idle threats. His concerns stem from Harris’ proposed policies, which include increased government spending and what some critics call “centralized price controls.”
Economists have crunched the numbers and estimate that Harris’ plans could cost $1.7 trillion. Paulson worries that such policies could disrupt the economic machinery.
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“It very much depends on who is in the White House and who controls Congress,” Paulson warned. “If they go ahead with a 25% tax on unrealized profits, it would lead to massive selling across the board – stocks, bonds, real estate, art. It would trigger a market crash, and we would be looking at a recession almost overnight. .”
Known for his ability to signal trouble ahead, Paulson’s words are sure to make investors uneasy. He has built a reputation for being able to see through the smoke before others smell the fire. So when he says he’s ready to withdraw from the US market, people listen.
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At the heart of Paulson’s concern is the middle class. During the conversation, he pointed out how much depends on the upcoming elections. “The middle class is critical to this election. And it’s about who will do better for them,” he said, adding that the average real wage has risen by about 6.5% under Trump’s policies. In contrast, under the Biden administration, real wages have fallen due to inflation.
