An unknown outcome of the next election could send the S&P 500 down 25%, or up 15% this time next year, according to Paul Tudor Jones, as noted by CNBC the other day.
In fact, he believes the S&P 500 would plunge 25% if Sen. Elizabeth Warren is elected. He also believes the index could rise 15% if Trump wins the next election. “Her policies would – assuming they were implemented – probably give you something like that,” he said. “As an investor, you have to have a view on the election because the outcomes are so extreme.”
“I’ve never seen this kind of polarity in elections as we have now,” he says.
Now, he says the “stock market will definitely decline because that will assume that it’s going to be accompanied by a raise in taxes.”
Jones isn’t the only one fearful of this happening, especially if Elizabeth Warren were to win. Hedge fund manager Leon Cooperman has blasted Warren over her proposed wealth tax and her characterization of billionaires, for example.
One of her promises is to impose a 2% tax on households with a net worth of more than $50 million, and a 3% tax on households with a net worth of more than $1 billion.
“I don’t need Elizabeth Warren telling me that I’m a deadbeat and that billionaires are deadbeats. The vilification of billionaires makes no sense to me. The world is a substantially better place because of Bill Gates, Michael Bloomberg, David Rubenstein, Bernie Marcus, Ken Langone,” Cooperman said, as also quoted by CNBC.
Of course, it’s all a wait and see at this point.