Billionaire Paul Tudor Jones on Monday joined a growing chorus of Wall Street regulars in forecasting major losses for the U.S. stock market if Democrat Elizabeth Warren wins the 2020 presidential election.
The S&P 500 would sink about 25% if the Massachusetts senator beats President Donald Trump next year on investor fears over her proposed wealth tax, Jones said at the Robin Hood Investors Conference, according to a Bloomberg News report.
Jones also reportedly cited an internal poll at his macroeconomic fund in claiming that economic growth in the U.S. would fall to 1% from an estimate of more than 2% this year.
One of Warren's central campaign promises is to impose a 2% tax on households with a net worth of above $50 million and a 3% on household net worth over $1 billion. The senator has said that revenues generated from the tax would be used to help pay for policy initiatives like better education, Medicare for All or environmentally friendly programs.
Her wealth tax and general distrust of big business have drawn the ire of several on Wall Street. In an interview published last week, another billionaire investor, Leon Cooperman, unloaded on Warren's wealth-taxing proposal and rich-bashing rhetoric.
"Her policies are counterproductive," Cooperman said on CNBC in September. "They're negative for capitalism, and capitalism is what brought America into the position we're in today."
Those concerned have been echoed by others, including Mark Mobius, who agreed with Cooperman earlier this month that the stock market could sink 25% if she wins next year.
"I've said that if [President Donald] Trump is not reelected, the market would go down," said Mobius, founding partner of Mobius Capital Partners. A 20% or 25% drop "is probably possible."
For his part, Jones appears to prefer South Bend, Indiana, mayor Pete Buttigieg in the 2020 presidential election. He reportedly lauded the politician at a recent gala.
"I love Pete, I love Mayor Pete, because I think he would be the best administrator to run this country, and he's got a compassionate heart," the billionaire investor said at a recent gala, according to a report. "He's my man."
Though Jones added at the time that he's not politically active, the hedge fund manager has given to both Republicans and Democrats in the past, including in the last 12 months.
He has within the past year donated to groups supportive of Ohio Representative Tim Ryan, Virginia Senator Mark Warner and former Colorado governor John Hickenlooper, according to public filings at the Federal Election Commission. He has a net worth of over $5 billion, according to Forbes.
— Click here for the original Bloomberg News report.