The Prof G Pod with Scott Galloway Why Markets Don't Panic Anymore + How to Build Real Relationships at Work
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May 13, 2026 A look at how algorithmic and passive investing have changed market reactions and why that shift has tradeoffs. Practical tips for introverts to build real workplace relationships through writing, mentorship, and selective socializing. A case for moving to cities when young to capture career opportunity despite high costs.
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Algorithms And Passive Funds Muted Market Panic
- Algorithmic and passive investing have materially changed market behavior by reducing headline-driven stampedes.
- Algorithms provide liquidity in calm times and passive funds don't panic, which makes dips shallower after geopolitical shocks like wars or tariffs.
Algorithms Can Create Flash Crash Liquidity Gaps
- Algorithms lower volatility in normal periods but can create sudden liquidity gaps during stress when many systems step away.
- Examples include flash crashes where kill switches and feedback loops cause rapid, deep drops in seconds.
Sell Employer Stock And Favor Diversified Index Funds
- Diversify away from concentrated employer stock and put the majority into low-cost, diversified index funds.
- Limit individual stock gambles to ~30% of your portfolio and sell company shares regularly if you already work there.