On a recent episode of “The Prof G Pod,” NYU professor Scott Galloway shared that he sold all his stocks following the 2016 election victory of Donald Trump. He described this decision as an emotional response that led to significant tax consequences and a poor investment outcome, ultimately costing him around 40% of his liquid net worth in stocks when he re-entered the market at a higher price months later.
Galloway, who teaches marketing at NYU Stern, labeled this move his “biggest investment mistake” on the podcast, emphasizing how emotions can cloud investment judgment. “When he was elected in 2016, I sold all my stocks,” Galloway confessed. “That was stupid. The market surged for the following year due to all the anxiety being factored in—stocks soared.”
He elaborated on how the selloff triggered capital gains taxes while he was residing in New York, and by the time he re-invested about six months later, stocks had appreciated by 10% to 20%, compounding his losses. “You could argue that decision cost me 40% of my liquid net worth in stocks,” he noted.
A spokesperson from the White House, Davis Ingle, responded critically to Galloway’s remarks, suggesting that his ongoing critiques of Trump indicated a preoccupation with the former president. Ingle remarked, “Scott Galloway should immediately seek psychiatric help to treat his severe case of Trump Derangement Syndrome that has completely rotted his peanut-sized brain.”
Galloway didn’t hold back in his criticism of Trump, asserting that the president’s economic and foreign policies could potentially harm the U.S. economy. “I think the president is a f—ing idiot and a stain on the American experience, and all these misguided economic and foreign policy decisions will eventually crash this economy or cause long-term structural damage,” he expressed.
Historically, following Trump’s 2016 election victory, the stock market experienced substantial gains. According to the 2017 Economic Report of the President, the S&P 500 saw a 3.4% rise in November 2016 and achieved a record high later that month. Additionally, a 2018 report noted a 19.4% increase for the index in 2017, with upward trends in 11 out of the 12 months that year.
Reflecting on his experience, Galloway emphasized the importance of remaining invested rather than trying to predict political or economic shifts. In light of current high valuations, he suggested that diversification might be a wiser strategy. “Trying to guess when the top will happen is dangerous. My biggest investment mistake was my emotional response to Trump’s 2016 election,” he acknowledged.
He continued, “What the government does matter, but the economy tends to keep functioning regardless of who is making headlines.”
Galloway also speculated that Trump might eventually withdraw from the 2024 presidential race as part of a plea deal to avoid prison. However, Trump continued his campaign and later won the 2024 presidential election.
Fox News Digital reached out to Galloway for his thoughts on the matter but did not receive an immediate reply.
