Elon Musk says Warren Buffett is positioning himself for a Kamala Harris win with his $277 billion cash stash as Trump supporter John Paulson warns of stock market exit

By admin On Sep 20, 2024 0

While the vice president Kamala Harris He is rapidly advancing in the polls against his Republican rival Donald Trump, She hasn't found much traction in the business and investment world. Hedge Fund Manager John Paulson, The founder of New York-based investment firm Paulson & Co. said in a media appearance Tuesday that he would pull his money out of the market should Harris win, while Tesla Executive Director Elon Musk marked something even more sinister.

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Chalk and Cheese: Market timing and investor timing will depend on who is president, saying Paulson in an interview with conservative media outlet Fox News. Paulson is a Trump supporter and Republican donor, and the former president reciprocates. In March, a Bloomberg report said Trump was considering the hedge fund manager for the Treasury secretary post.

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“If Harris were elected, I would take my money out of the market. I would put it in cash and gold because I think the uncertainty about the plans they have outlined would create a lot of uncertainty in the markets and probably lower markets,” he told Fox News.

Paulson is best known for his profitable bet against subprime mortgages in 2007.

While Trump wants to extend the 2017 tax cuts implemented during his term, Harris planned to let them expire, he said, adding that the latter seeks to raise the corporate tax rate from 21% to 28% and the capital gains tax from 20% to 28%.

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The vice president has also proposed a 25% tax on unrealized gains for people with a net worth of $100 million or more, Paulson said. If implemented, it would trigger “a sell-off of almost everything — stocks, bonds, houses, art — I think it would cause a collapse in the markets and an immediate and fairly rapid recession,” she added.

Musk chimes in: When Mario Nawfal, who hosts Twitter Spaces, shared the Fox News clipping of Paulson's interview, Musk said: “(Warren) Buffett “He is already preparing for this outcome.”

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Musk, who has publicly pledged loyalty to Trump after the first assassination attempt on the former president at a campaign rally in Pennsylvania, apparently referred to Berkshire Hathawaythe Buffett-led firm, divesting large positions in some of its key holdings.

Berkshire sold 115 million Apple shares in the first quarter and then sold another 390 million shares in the second quarter. At the end of June, the company still owned 400 million Apple shares despite the sales. At Berkshire's annual shareholder meeting in May, the investment guru said the decision to sell the company's largest stake, Apple, was to raise cash to pay the federal tax bill and also in line with his intention to hold more cash in uncertain times.

The company The cash position at the end of the June quarter was a whopping $277 billion.

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The investment holding company run by Buffet has also been cutting its stake in Bank of America Corp. (NYSE:BAC), another of the top stocks in his portfolio.

The Berkshire chairman and CEO advocates value investing, an investment strategy that involves betting on quality stocks that trade well below their intrinsic value. He rarely invests in technology companies, which are considered growth stocks. Musk, for his part, has been sending out feelers to Berkshire and Buffett through his social media posts about the possibility of investing in their flagship electric vehicle company.

Since Buffett is considered a model investor known for his risk-averse strategies, any decision to reduce his stock holdings could negatively impact sentiment toward the stock.

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This article Elon Musk says Warren Buffett is positioning himself for a Kamala Harris win with his $277 billion cash stash as Trump supporter John Paulson warns of stock market exit Originally appeared in Benzinga.com