What HNW Investors Do When Markets Panic

The S&P 500 recently crossed back into positive territory as markets have looked past tensions over the Iran war and Strait of Hormuz, at least for now.

So what did HNW investors actually do during the worst of it? According to our community, the most common answer is: nothing.

For most long-horizon investors, that's probably right. But a subset of more active investors used the volatility constructively. Here's how the approaches compare:

Hold / Do Nothing: For long-horizon, diversified investors. Reacting to short-term swings typically does more harm than good.

Tax-Loss Harvesting: Sell positions at a loss to offset taxable gains, then reinvest in similar assets to maintain exposure. Direct indexing automates this at scale.

Covered Calls: Sell a contract giving someone the right to buy your shares at a set price. Generates premium income on positions you already own.

Protective Puts: Buy a contract giving you the right to sell shares at a set price (a floor on your downside). Think of it as portfolio insurance.

Read more in our blog: Steady Hands: How High-Net-Worth Investors Are Navigating Market Volatility

Survey data from our High-Net-Worth Professional Services Study adds texture to a question many navigate privately: how common is it to work with a therapist or counselor?

The answer depends heavily on age. Among HNW individuals under 40, 43% have a therapist or counselor — more than any other age group by a wide margin. That falls to a quarter of respondents in their 40s and drops off considerably for those 50 and older.

The pattern suggests that younger individuals are more likely to approach mental health proactively and as a meaningful investment.

For those who go to therapy, satisfaction is high: an average rating of 8.3 out of 10, with 91% reporting satisfied or extremely satisfied. The top-cited strengths are quality of impact, kindness, and personal connection.

The median annual spend is $5K, comparable to a personal trainer, housekeeper, or trust and estate attorney.

Check out the full report: High-Net-Worth Professional Services Report

The music and investing worlds are colliding. Bill Ackman’s Pershing Square recently proposed a $64B acquisition of Universal Music Group (UMG), aiming to move the listing of the world's largest music company from Europe to the NYSE.

For private market investors, the long-term upside of the global music market is worth looking into. Our Music Royalties Investment Guide provides a deep dive into how investing in music IP actually works. 

Why invest? Uncorrelated cash flows. In today’s concentrated public and private markets, royalties can behave like lower-volatility, long-duration annuities while still offering meaningful upside potential.

Key takeaways from our guide include:

Read the guide to learn more: Music Royalties Investment Guide

At a certain level of success, it becomes rare to find people who’ve been where you are to discuss what you're going through.

A Long Angle Trusted Circle is a small, vetted group of peers matched by net worth, background, and life stage. These groups meet monthly to share real decisions, hard-won insights, and candid perspectives on current challenges.

Members describe it as the clearest thinking time in their month.

Learn more about Trusted Circles.

Chris Bendtsen

Insights Lead, Long Angle

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