John Paulsen made a killing by calling the 2008 housing market bubble. A supporter of GOP candidate Trump, he is on CNBC given an interview.
- He says it is a good time for investing
- We did have a bubble in government debt (negative interest rate times), but does not see it anymore
- He favors a 50 basis point cut from the Fed next week
- He thinks the tipping point from the national debt could put pressure on the financial markets (US yields).
- If we continue to run high deficits and increase taxes that would hurt the economy.
- We will see a crash if see 40% capital gains taxes, tax on unrealized gains, and if the Trump tax cuts expire under a Harris presidency.
- If Harris won, he would be more in cash and keep his investment in Gold (gold is at a record level)
- The major reason gold is rising as have less confidence in paper money.
- 10% in gold would be a prudent amount for investors.
- The markets depend on who is elected.
- Thinks stocks will go up, interest go do, earnings go up and have a robust economy if Trump elected President
