The latest voice warning about the cost should Sen. Elizabeth Warren (D-MA) win the White House in 2020 is billionaire investor Paul Tudor Jones.
Jones predicted that if Warren were to clinch the 2020 election, “the S&P 500 would plunge 25%,” CNBC reported Nov. 5. He also predicted that if President Donald Trump were to win reelection, the S&P would see “another 15% upside for the market.” This prediction came one day after the stock market hit another record high, according to Forbes Nov. 4.
If Trump is reelected, Jones said the S&P 500 would jump to 3,600 points. If either Biden or Buttigieg is elected, Jones predicted that the “index could hover around 2,700,” CNBC noted.
Jones’ predictions were derived from an internal survey his investment firm had conducted of its employees, who believed that “the S&P 500 could swoon to 2,250 if Warren comes out on top,” according to CNBC.
According to Jones, “‘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.’”
Jones’ predictions are not an outlier. According to CNBC Nov. 4, financial executives on Wall Street informed Senate Minority Leader Chuck Schumer (D-NY) that “they are, for the moment, holding back from donating to Democrats running for Senate in 2020 due to their concerns with Warren becoming a front-runner in the race for the party’s presidential nomination.”
CNBC also noted that these executives, which included both hedge fund managers and private equity executives, were worried that Warren’s policies would be “detrimental to their businesses.”