NYU Professor Admits Selling Stocks After Trump’s 2016 Win Was ‘Stupid’

NYU marketing professor Scott Galloway stated on a recent episode of "The Prof G Pod" that his decision to sell all his stocks following Donald Trump's 2016 election victory was a significant financial misstep. He described the move as his "biggest investment mistake," estimating that it resulted in a loss of approximately 40% of his liquid net worth in stocks.

Galloway explained that his emotional reaction to Trump's win prompted the sell-off, leading to substantial capital gains taxes at the time. He later repurchased stocks about six months later, only to find the market had risen between 10% and 20%, compounding the financial impact of his initial decision. "So you could argue, at least notionally, that decision cost me 40% of my liquid net worth in stocks," Galloway said.

Despite the market's subsequent performance, Galloway reiterated his critical views on Trump, suggesting that the former president's economic and foreign policies could inflict long-term damage on the U.S. economy. He also advised investors against attempting to time the market based on political events, advocating instead for diversification.

The stock market saw a notable increase in the period following Trump's 2016 election. The S&P 500 index rose 3.4% in November 2016 and continued to climb throughout 2017, gaining 19.4% over that year, according to government economic reports.

In response to Galloway's comments, a White House spokesman characterized the professor's continued criticism of Trump as an obsession and stated that Galloway "should immediately seek psychiatric help to treat his severe case of Trump Derangement Syndrome."