Scott Galloway Recounted 2016 Stock Market Mistake

Marketing professor Scott Galloway liquidated his portfolio following the 2016 election, costing him 40% of his liquid net worth.

Updated on Sept. 29, 2026 in Investing

Gouache-painted editorial illustration of an iron compass with a trembling needle near iron weights, representing impulsive financial decision-making. — Marketing professor Scott Galloway reported that liquidating his stock portfolio after the 2016 election cost him 40% of his liquid net worth. AI Illustration. Upload story photo >

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NYU Stern marketing professor Scott Galloway sold his entire stock portfolio in 2016 following Donald Trump's presidential election win. He later described the emotional decision as his biggest investment mistake after missing significant market gains.

Why it matters

The case highlights the financial risks of making investment decisions based on political sentiment rather than long-term strategy. Galloway's experience serves as a cautionary tale for investors who attempt to time the market during periods of political volatility.

Galloway estimated that his exit from the market cost him 40% of his liquid net worth. During his six-month absence from the market, the S&P 500 increased by 10% to 20%.

The players

Scott Galloway

He is a marketing professor at NYU Stern who frequently provides commentary on business and technology.

Donald Trump

He is the current President of the United States whose 2016 election win triggered the market exit.

The details

Galloway liquidated his stocks due to an emotional reaction to the 2016 election result, only to re-enter the market six months later at higher prices. He shared these reflections during a September 2026 podcast, underscoring the negative impact of his temporary withdrawal from equities.

November 2016: The S&P 500 climbed 3.4 percent.
2017: The S&P 500 gained 19.4 percent.
September 29, 2026: Galloway discussed his 2016 investment decision on a podcast.

Market Dynamics

This move highlights the risks of allowing political cycles to dictate long-term portfolio management strategies. Such decisions often diverge from historical market resilience, which historically persists regardless of which party wins a presidential election.

Retail investors should note that reactive selling based on news headlines often results in missing out on market growth. Maintaining a disciplined, long-term approach to asset allocation generally proves more effective than attempting to time market fluctuations around elections.

The takeaway

Emotional reactions to political events often lead to significant financial underperformance for individual investors. Sticking to a long-term investment plan is typically the most reliable strategy to avoid the pitfalls of market timing.