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 investingWe did have a bubble in government debt (negative interest rate times), but does not see it anymoreHe favors a 50 basis point cut from the Fed next weekHe 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
This article was written by Greg Michalowski at www.forexlive.com.
