Real talk: emotional trading is the fastest way to sabotage your own bag. Scott Galloway, a marketing professor at NYU Stern, just shared that he fumbled the bag hard back in 2016.
After Donald Trump won the 2016 election, Galloway panic-sold his entire stock portfolio. He admitted on his “The Prof G Pod” that it was a “stupid” decision driven purely by his feelings about the election outcome.
The cost of the panic
The math behind this move is brutal. Galloway didn't just lose out on the market's growth; he also got hit with significant capital gains taxes while living in New York. After sitting on the sidelines, he tried to hop back into the market six months later—only to find that stocks had already ripped up by 10% to 20%.
By the time he got back in, the damage was done. Galloway estimated that his impulsive emotional reaction cost him 40% of his liquid net worth in stocks. “Trying to guess when the top happens is dangerous,” he told his listeners, emphasizing that the economy usually keeps grinding regardless of who’s in the White House or what’s happening on social media.
The fallout
White House spokesman Davis Ingle responded to Galloway’s recent criticism of the president by firing back with harsh comments regarding Galloway's mental state. Galloway, who maintains that current economic and foreign policies could lead to long-term structural damage, remains vocal about his disapproval of the administration.
Why it matters
If you’re stressed about the market or politics, take notes: selling off your assets because the vibes are off is a losing game. Diversification is your best friend, and trying to time the market based on headlines is highkey a recipe for disaster. Stay disciplined and keep your eyes on the long-term, because those emotional pivots can end up costing you years of growth.
