Paul Tudor Jones, billionaire, is absolutely positive that 25% of your S&P index fund will go up in smoke if Elizabeth Warren is elected president.
That is an objective assessment, based on careful calculations around how all of the dozens of policy proposals she’s put forward would interact with one another to affect financial conditions, the economy and investor sentiment.
I’m just kidding. Nobody knows what that figure is based on, but according to Bloomberg’s account of what Jones said at the Robin Hood Investors Conference in New York on Monday, it may be based on the same thing that his projection of plunging economic growth under a Warren presidency is based on – an internal poll at his macro hedge fund.
He also predicted that the market would plunge 20% were Bernie Sanders to wrench the keys to the Oval Office from Donald Trump’s tiny orange hands.
Jones is hardly the first billionaire to warn about the purported perils for everyday Americans if they make the “mistake” of voting for a candidate whose policies are specifically designed to close the gap between people like Jones and everyone else.
Last week, for example, Leon Cooperman (a frequent Warren critic) accused her of sh—-ng on the f—ing American dream.
Of course, that characterization all depends on how you think about the “American dream”. For some folks, that dream doesn’t involve becoming a billionaire and lording it over a disappearing middle class, nor is it defined in terms of yachts, Mulsannes and Vacherons.
In fact, if you break down equity ownership by income quintile and/or net worth, it’s not clear that it’s defined in terms of the S&P either (imagine that).
(Credit Suisse, Fed)
So, who does Jones prefer? Well, Mayor Pete, apparently.
“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”, Jones said earlier this month, at a gala (where other billionaires gathered).
As far as what would happen to stocks if Trump is reelected, Jones figures they’d gain at least 18% from current levels.