The News: Billionaire investor Paul Tudor Jones believes that a Warren presidency would sink the S&P 500 25%. Jones conversely stated that a Trump reelection would bring a 15% climb to the index. Jones is a hedge fund investor who started The Tudor Group.
Who It Affects: Jones issued his concerns over potential results of the 2020 election at the Greenwich Economic Forum to investors.
Why It’s Important: Jones told investors, “you have to have a view on the election because the outcomes are so extreme,” he said. “I’ve never seen this kind of polarity in elections as we have now.”
Background: Massachusetts Sen. Elizabeth Warren has made taxing the ultra-wealthy and regulating Wall Street a pillar of her campaign promises.
Warren has previously proposed:
- 2% tax on households with a net worth of above $50 million and a 3% tax on household net worth over $1 billion.
• Making private equity firms responsible for debts and pension obligations of the companies they buy.
What’s Next: Jones and Wall Street will have to wait and see if Warren wins the Democratic nomination, but Jones and other Wall Street execs have pointed to more moderate candidates like South Bend (Ind.) Mayor Pete Buttigieg, Former Vice President Joe Biden and California Sen. Kamala Harris as safer choices for the market.