Election-Based Stock Selloff Cost Professor 40% of Gains
Marketing professor Scott Galloway warns that selling stocks due to political events can damage your long-term wealth.
Updated on Sept. 29, 2026 in Investing
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Following the 2016 U.S. presidential election, NYU Stern professor Scott Galloway sold his entire stock portfolio. He later characterized the emotional decision, which lasted for six months, as his biggest investment mistake.
Why it matters
Galloway estimated this exit cost him 40% of his liquid net worth, as the market surged in his absence. This underscores the financial risk of making investment decisions based on political outcomes rather than long-term strategy.
During his six-month absence from the market starting in 2016, stocks rose between 10% and 20%, contributing to a 40% loss of liquid net worth. The broader market continued to grow, with the S&P 500 gaining 19.4% throughout 2017.
The players
Scott Galloway
A marketing professor at NYU Stern who teaches business strategy and discusses personal financial mistakes.
Donald Trump
The current President of the United States whose 2016 election result served as the catalyst for the professor's stock market selloff.
The details
Galloway liquidated his holdings as an emotional reaction to the election of Donald Trump. By the time he re-entered the market six months later, he was forced to purchase stocks at significantly higher prices. Missing the 19.4% gain in the S&P 500 during 2017 illustrates how exiting the market can lead to substantial opportunity costs for investors.
Timeline
November 2016: The S&P 500 index climbed 3.4 percent.
2017: The S&P 500 index gained 19.4 percent.
September 29, 2026: Galloway discussed his 2016 investment decision on a podcast.
Money Landscape
The experience highlights the perils of emotional investing during periods of political change. This follows the pattern set by the 2016 U.S. presidential election market volatility, where reactive decision-making led to significant missed growth.
Investors should review their portfolio strategy to ensure it remains aligned with long-term goals rather than short-term political shifts. Consult with a qualified financial professional to assess if your asset allocation can withstand market reactions to national events.
The takeaway
Emotional reactions to political events often lead to costly portfolio exits that miss long-term market growth. Maintain a disciplined, long-term plan and discuss any concerns about market volatility with a qualified financial professional rather than timing the market.
Further reading
For more on managing a portfolio through political cycles, visit our Investing section.
Source note: This article includes information reported by New York Post.
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