THE MARKET WILL NOT BE THE ONLY THING TO CRASH

Billionaire Hedge Fund Manager John Paulson Predicts a Market Crash If Harris Wins – Here's What He Said

 

By Aditi Ganguly

 

Yahoo Finance

Oct 4, 2024

 

John Paulson 

 

John Paulson, the founder and President of the hedge fund turned family office Paulson & Co., has been one of the most vocal supporters of former President and Republican nominee Donald Trump. He was also reportedly under consideration as the Treasury Secretary provided Trump succeeds in the upcoming election.

The billionaire hedge fund manager first rose to prominence in 2008 after making nearly $15 billion by shorting the housing market, making him legendary on Wall Street.

Paulson has long supported Trump and was one of the biggest donors to his 2016 and 2024 campaigns. The 68-year-old Harvard graduate is estimated to have raised $48 million for Trump's current reelection campaign.

Paulson vs. Harris

Paulson distrusts Harris because of her plans to increase corporate and personal taxes. Furthermore, the current vice president and Democratic nominee's plans to implement a "billionaire minimum tax" on unrealized capital gains have also been a source of contempt for the hedge fund manager.

"They want to raise the corporate tax rate from 21 to 28%, they want to raise the capital gains tax from 20% to 39% and then they want to add a tax on unrealized capital gains of 25%," Paulson said. "I think if they implement those policies, we'll see a crash in the markets, no question about it."

Harris has also proposed implementing a 28% tax on long-term capital gains for households with a net annual income of over $1 million and a 25% tax on unrealized gains for households yielding over $100 million.

"If Harris is elected, I would pull money from the market," Paulson said.

The billionaire investor also predicted an immediate recession if Harris wins this election season, similar to Trump's claims of a 1929-like market crash.