Billionaire Issues Alarming Threat, Lobbing Grenade at 2024 Election...

Quick Note: I’m sure we have quite a range of readers here at Stocks.News who affiliate with both (or all) political parties, but still it’s 2024 and we live in weird times - so please, don’t shoot the messenger here as this is definitely an interesting story to keep in the back of your mind: 

In short, John Paulson, the hedge-fund heavyweight who made literal billions predicting the 2008 housing market crash, just lobbed a grenade into the 2024 election debate—and it’s got Wall Street buzzing. His warning? Elect Kamala Harris as president, and he’s cashing out. Like, all the way out.

(Source: New York Post) 

That’s right. The billionaire behind Paulson & Co. told Fox Business that if Harris takes the Oval Office in 2024, he’s pulling the ripcord on U.S. stocks and diving headfirst into safe havens like cash and gold. Why? Well, like many in his circle, the man’s got beef with her economic policies, especially the ones involving tax hikes on the rich and big corporations.

"If Harris is elected, I would pull my money from the market," Paulson, 64, said in his no-nonsense style. "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."

(Source: Giphy) 

So clearly, Paulson’s definitely got big issues on taxes and the Harris campaign. And while Harris has hinted at raising taxes on corporations and the ultra-wealthy to fund programs like childcare, climate initiatives, and deficit reduction - if there’s one thing billionaires hate more than bad yacht service, it’s paying more taxes.

(Source: X) 

Paulson specifically called out a Harris proposal to tax unrealized capital gains—aka charging you taxes on money you haven’t even made yet. According to him, this could lead to a massive sell-off from wealthy investors scrambling to avoid the taxman. We’re talking stocks, bonds, real estate, fine art—everything. "I think it would cause a crash in the markets and a pretty quick recession," Paulson warned.

(Source: CNBC)

Now obviously, with these claims, Paulson (a tried-and-true Trump megadonor), isn’t exactly hiding his allegiances here. He’s all-in on Trump’s economic policies, which he credits with boosting middle-class wages and keeping inflation in check. In contrast, he blames Biden (and by extension, Harris) for the rising cost of, well, everything.

(Source: Giphy) 

In fact, here’s a quick history lesson for ya: Remember Trump’s 2017 tax cuts? They lowered rates across the board, and Paulson’s a fan. Meanwhile, Harris wants to roll some of that back to fund her programs. So obviously, you can see where Paulson is headed with his argument. 

This is also why Paulson has a hot take on tariffs—those “strategic” taxes on imports that Trump slapped on China. And while economists generally agree that Trump’s tariffs raised prices for American consumers (JP Morgan Chase estimated it cost households an extra $1,300 a year), Paulson isn’t sweating it. He says tariffs could be a clever way to raise government revenue without hiking taxes on the rich. "You don't need to raise taxes that way if you put on 10% tariffs," he stated.

(Source: Fox Business) 

Now with all that said, in case you’re wondering how serious Paulson is about this, let’s just say the man’s got history. He’s already a big fan of gold, having parked a chunk of his fortune there in recent years. So when he says he’s ready to go all-in on the shiny stuff if Harris wins, it’s not just talk.

Especially since the last time Paulson made a bold move like this, he walked away with $20 billion after betting against the housing market. So yeah, when he says he’s getting out of stocks and into gold if Harris wins, people tend to listen. 

(Source: Giphy) 

However, the big question now is: Will other rich folks follow Paulson’s lead and bail on U.S. markets if Harris wins? That’s the legit billion-dollar question. But while Paulson’s warning is definitely dramatic, it’s still early days. Harris hasn’t even laid out her full economic platform yet, so we don’t know exactly what she’s got up her sleeve.

On the other hand, if Paulson's freakout is any indicator, wealthy investors are already bracing for impact. And if the billionaire class starts bailing on the stock market? Well, let’s just say things could get very interesting.

(Source: Giphy) 

But still, if there’s anything we learned after the Fed gave us all a blessing with a jumbo 50 basis point cut only to send the markets in a tailspin yesterday, it’s this: The markets are notoriously unpredictable. For all we know, Harris could win and the markets could thrive, or she could lose and the markets could tank for reasons no one saw coming. That’s just how the game works.

So even though Paulson definitely has a point - it’s also a really rich-guy point. Sure, taxing unrealized capital gains could trigger panic selling (obliterating individual investors like you and I), but let’s be real: billionaires always tend to dodge taxes in ways us small folk don’t have the luxury of capitalizing on.

So even though billionaires are worried… At the end of the day, who really gets left holding the bag? If you guessed ordinary tax paying citizens, well then you guess correctly.

(Source: Giphy) 

But again, if enough people like Paulson decide to pull the plug on the market, we could be staring down a self-fulfilling prophecy. Markets run on fear, and right now, Paulson’s serving it up by the truckload. 

The silver lining to all of this? The guy who made $20 billion predicting the housing crash is now betting on gold. If that doesn’t tell you anything, I don’t know what will. 

(Source: Giphy) 

As always, do what you will with this information, but regardless… stay safe and stay frosty, friends! Until next time… 

P.S. It’s Official: we will be officially releasing a brand new explosive alert to premium members ONLY today at 4pm EST! Click here for the details to ensure you’re in on the action before things get crazy…

Stocks.News does not hold positions in companies mentioned in the article.