{"id":319859,"date":"2026-03-09T00:50:22","date_gmt":"2026-03-09T00:50:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/319859\/"},"modified":"2026-03-09T00:50:22","modified_gmt":"2026-03-09T00:50:22","slug":"how-professional-investors-react-when-markets-panic-the-prosperity-project","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/319859\/","title":{"rendered":"How professional investors react when markets panic \u2013 The Prosperity Project"},"content":{"rendered":"

Instead of reacting emotionally to headlines, he says the first step after an unexpected event is to \u201ctriage your risk,\u201d so you\u2019re not just considering the initial impacts, like a spike in oil prices, but downstream effects. <\/p>\n

\u201cIf this gets worse,\u201d he says, \u201cwhich of my companies are most at risk, most exposed to this?\u201d<\/p>\n

Some unusual market outcomes at present are being driven by investors rushing from one fashionable sector to another. <\/p>\n

\u201cOn the face of it, the S&P 500\u2019s fairly flat, but you\u2019ve seen extreme dispersion going on,\u201d Dickie told The Prosperity Project<\/a>. \u201cEnergy stocks are up about 25% year to date and software stocks are down 20 \u2013 so a 45% spread in big sectors is extremely unusual.\u201d<\/p>\n

\"SamSam Dickie is a senior portfolio manager at Fisher Funds.<\/p>\n

Money has been pouring into companies seen as crucial to artificial intelligence infrastructure. \u201cEveryone\u2019s rushing into memory stocks,\u201d he says, pointing to manufacturers such as Samsung, Micron and SK Hynix. <\/p>\n

Crowded trades can unwind quickly however, to devastating effect. <\/p>\n

\u201cIf you look at the Korean stock market, about 45% of the stock market is two stocks \u2013 Samsung and Hynix \u2013 that\u2019s down 21% in two days,\u201d Dickie says. \u201cYou do not see stock markets fall 21% in two days.\u201d<\/p>\n

\u201cThese things [fashionable sectors] change every few months,\u201d Dickie says. \u201cIt\u2019s very aggressive and it\u2019s very concentrated investing \u2013 which is very risky.\u201d <\/p>\n

The same dynamic can apply to traditional \u2018safe haven\u2019 assets, like gold \u2013 which hit fresh record highs above US$5000 an ounce earlier this year. <\/p>\n

\u201cIf you\u2019re being told about gold by the shoeshine person, chances are it won\u2019t behave like it normally would in a safe-haven washout,\u201d Dickie says.<\/p>\n

History can offer context for investors, but it often doesn\u2019t provide reliable trading signals. <\/p>\n

Dickie points to the 2016 election of Donald Trump. Markets had widely predicted he wouldn\u2019t win, and if he did, that it would be negative for stocks. Instead, the S&P 500 rallied about 20% the following year. <\/p>\n

\u201cEven if you\u2019d had tomorrow\u2019s newspaper yesterday, you still wouldn\u2019t have made any money out of it,\u201d he says.<\/p>\n

Watch or listen to the full episode of The Prosperity Project<\/a> for more.<\/p>\n

The Prosperity Project is hosted by Nadine Higgins, an experienced broadcaster and financial adviser.<\/p>\n

Follow the show at iHeartRadio<\/a>, Apple Podcasts<\/a>, Spotify<\/a> or wherever you get your podcasts. New episodes are released every Monday.<\/p>\n","protected":false},"excerpt":{"rendered":"Instead of reacting emotionally to headlines, he says the first step after an unexpected event is to \u201ctriage…\n","protected":false},"author":2,"featured_media":319860,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[138,3685,45062,221,138705,321,16609,13840,220,111,43,139,69,9061,109482,56155,12886,3263,20586,39429,71780,223,1316],"class_list":["post-319859","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-events","tag-everyday","tag-how","tag-instinct","tag-investors","tag-iran","tag-like","tag-markets","tag-new-zealand","tag-news","tag-newzealand","tag-nz","tag-often","tag-opposite","tag-panic","tag-professional","tag-project","tag-prosperity","tag-react","tag-sharemarkets","tag-the","tag-when"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/319859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=319859"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/319859\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/319860"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=319859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=319859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=319859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}