Elon Musk Says Warren Buffett Is Positioning For Kamala Harris Win With His $277B Cash Pile As Pro-Trumper John Paulson Warns Of
Elon Musk recently weighed in on the implications of Vice President Kamala Harris’s potential victory in the 2024 U.S. presidential elections, joining billionaire Warren Buffett and hedge fund manager John Paulson in discussions about the market’s future. Musk suggested that Buffett is positioning his $277 billion cash reserves in anticipation of Harris’s win, signaling a cautious approach to the potential economic impact.
Hedge fund manager John Paulson, known for his profitable bet against the subprime mortgage crisis in 2007, warned of significant market instability if Harris is elected. In a Fox News interview, Paulson explained that he would pull his investments from the equity market, shifting his assets to cash and gold. His primary concern is Harris’s economic policies, including her plans to increase the corporate tax rate from 21% to 28% and capital gains taxes from 20% to 28%, as well as her proposal for a 25% tax on unrealized gains for individuals with a net worth of $100 million or more. Paulson believes these measures would create uncertainty in the markets, leading to lower valuations and potentially triggering a recession.
While President Donald Trump has pledged to extend the tax cuts enacted during his presidency, Harris intends to let them expire, creating further divergence between the candidates’ fiscal platforms. Paulson’s remarks reflect concerns from various business leaders who worry that the proposed tax hikes could lead to a selloff across multiple asset classes, including stocks, bonds, real estate, and art.
Elon Musk, in response to a clip of Paulson’s interview shared on social media, hinted that Warren Buffett is already preparing for such an outcome by holding onto his substantial cash reserves. This aligns with Buffett’s well-known conservative investment approach during periods of economic uncertainty. Musk’s comments add to the broader conversation surrounding how the election could reshape the U.S. financial landscape.
The sentiment among these business figures underscores a broader concern within the investment community about how Harris’s economic policies could impact financial markets. Many are closely watching the 2024 election outcome, as it could drastically affect market dynamics depending on which candidate secures the presidency.
