Story perspectives

Professor Scott Galloway Warns Against Emotional Trading After Loss

By Drooid · Sep 30, 2026, 12:43 AM UTC · How we work

Summary

Story summary

Professor Scott Galloway sold his NYU portfolio after U.S. President Donald Trump’s 2016 election, losing 40% of his net worth.
He re-entered the market six months later when stocks were 10–20% higher, paying capital-gains tax on a third of gains.
Galloway warned investors to avoid emotional trades and maintain diversification.
White House spokesman Davis Ingle said Galloway’s Trump criticism showed obsession and urged psychiatric help.

History

Historical Context

The 2008 financial crisis, ignited after the September 2008 collapse of Lehman Brothers, plunged U.S. equity markets by 38% dramatically. Federal Reserve Chairman Ben Bernanke cut rates to 0% in December 2008, and Treasury Secretary Henry Paulson launched a $700 billion rescue program. Similarly, after Donald Trump’s 2016 election, Scott Galloway sold his NYU holdings, mirroring panic exits post-Lehman, while White House spokesman Davis Ingle rebuked his criticism. These episodes illustrate how political shocks and vocal commentary can amplify market volatility, prompting regulators to stress diversification and investor education.

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Story summary

Professor Scott Galloway sold his NYU portfolio after U.S. President Donald Trump’s 2016 election, losing 40% of his net worth.
He re-entered the market six months later when stocks were 10–20% higher, paying capital-gains tax on a third of gains.
Galloway warned investors to avoid emotional trades and maintain diversification.
White House spokesman Davis Ingle said Galloway’s Trump criticism showed obsession and urged psychiatric help.

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