Tue Jun 24 2025, by Tyler Gardner

Wealth ManagementInvestment StrategyMarket SelloffsFinancial ResiliencePersonal Finance

3 Ways Wealthy Investors Respond to Market Selloffs

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1. Selling to Reduce Risk Exposure

Some investors choose to sell to reduce their risk exposure. One investor I know sold Nike, semiconductors, and some tech ETFs, worried that tariffs and political instability could derail the US economy. Remember, the market is not the economy, but whatever. He moved the cash to money markets and is eyeing international diversification.

2. Buying the Dip

Other wealthy investors are buying the dip. Yes, it’s market timing, but one investor I know sees these moments as literal millionaire makers. Despite the chaos, he bought even more of what he's already held for decades.

3. Doing Absolutely Nothing

Some wealthy investors do absolutely nothing. I stayed fully invested and didn’t take a massive hit thanks to a globally diversified portfolio across various asset classes. While markets dropped $7.7 trillion, I kept my eyes on my long-term goals, not the short-term headlines.

Conclusion

The moral of the story is that personal finance is personal. You should do whatever helps you sleep at night and take one step closer to where you need to be.

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