October 19, 1987 \u2014 infamously known as Black Monday \u2014 witnessed the largest one-day percentage drop in the history of the Dow Jones Industrial Average, wiping out approximately $500 billion in market capitalization and rattling investors worldwide. Yet, Louis Llanes, a portfolio manager and contributor to TheStreet Pro, recalls feeling the opposite of fear. \u201cNo, no, no,\u201d he said. \u201cIt got me excited because I was more involved with global macro at the time. You could be short, long, in commodities, stocks, bonds, currencies.\u201d<\/p>\n
Founder of Wealthnet Investments, LLC and author of The Financial Freedom Blueprint<\/em>, Llanes discussed his broad market perspective and investing insights during a May 15 interview on TheStreet Stocks & Markets Podcast with Chris Versace, lead portfolio manager for TheStreet Pro Portfolio.<\/p>\n Llanes emphasized the importance of investing with a long-term view, noting that newer investors tend to fall into two camps: those who are self-directed and capable, like engineers, and those with less time, such as busy managers. For all investors, he advocates strategy grounded in economic fundamentals rather than emotion. \u201cThe biggest problem you get is\u2026people hearing all sorts of things and only focusing on the wins, not the losses,\u201d Llanes said. \u201cThose who talk a lot about how much money they made probably aren\u2019t doing as well as you think.\u201d<\/p>\n source: Yahoo Finance<\/p>\n Highlights:<\/strong><\/p>\n Llanes views Black Monday as an opportunity, highlighting the value of global macro investing.<\/p>\n<\/li>\n Advises investors to build strategies based on economic principles, not emotions.<\/p>\n<\/li>\n Cautions against being swayed by anecdotal success stories in investing.<\/p>\n<\/li>\n<\/ul>\n Turning to recent market disruptions caused by President Donald Trump\u2019s evolving tariff plans, Llanes pointed out that the initial tariff shock was always expected to be rolled back due to its impracticality. He explained, \u201cRight on its face, we knew it wasn\u2019t feasible. So we knew there\u2019d be some pulling back.\u201d While negotiations are likely to normalize, the aggressive initial announcement accelerated dialogue and movement faster than traditional, country-by-country approaches.<\/p>\n Llanes urged investors to recognize that tariffs will create a landscape of winners and losers. He anticipates interest rates to remain elevated, largely supported by increased U.S. investment. Contrary to alarmist predictions, he believes tariffs will not trigger runaway inflation.<\/p>\n He warned that rapidly growing, highly overvalued companies could face significant headwinds as the higher interest rate environment tightens capital availability and investor appetite. \u201cThat will hold up interest rates,\u201d he said, \u201cand I think that\u2019s going to affect the real fast-growing companies that are way overvalued. They\u2019re going to struggle, I believe.\u201d<\/p>\n Highlights:<\/strong><\/p>\n Tariff rollback was expected due to impractical initial implementation.<\/p>\n<\/li>\n Tariffs accelerate trade talks but create a market with clear winners and losers.<\/p>\n<\/li>\n Interest rates likely to stay higher, supported by rising U.S. investments.<\/p>\n<\/li>\n Overvalued, fast-growing companies may struggle in the tightening environment.<\/p>\n<\/li>\n<\/ul>\n Llanes reiterated a timeless investing principle: \u201cAs soon as you know you\u2019re wrong, get out.\u201d He stressed cautious management of winning positions as well, advising investors to be hesitant about unloading securities prematurely. He acknowledged that investors, especially those with demanding careers such as doctors, often receive mixed signals and noisy advice. This can cause emotional reactions rather than rational decisions based on sound economics.<\/p>\n His counsel is to maintain discipline, focus on long-term strategies, and avoid being swayed by market hype or panic. \u201cLet your profits run, cut your losses short,\u201d he summarized, highlighting this rule\u2019s enduring importance in navigating volatile markets.<\/p>\n Highlights:<\/strong><\/p>\n Immediate exit recommended when recognizing a losing position.<\/p>\n<\/li>\n Exercise caution before selling profitable investments.<\/p>\n<\/li>\n Emphasizes disciplined, economics-driven strategies over emotional reactions.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":" Louis Llanes Reflects on Market Crashes and Shares Long-Term Investment Wisdom October 19, 1987 \u2014 infamously known as Black Monday \u2014 witnessed the largest one-day percentage drop in the history of the Dow Jones Industrial Average, wiping out approximately $500 billion in market capitalization and rattling investors worldwide. Yet, Louis Llanes, a portfolio manager and […]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-8891","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=8891"}],"version-history":[{"count":2,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8891\/revisions"}],"predecessor-version":[{"id":8894,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/8891\/revisions\/8894"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/8892"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=8891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=8891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=8891"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=8891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Navigating Tariff Turmoil: Llanes\u2019 Take on Trump\u2019s Trade Policy and Market Impact<\/h2>\n
Expect Winners and Losers as Tariff Strategies Evolve<\/h3>\n
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Llanes\u2019 Core Investing Rule: Cut Losses Quickly, Let Profits Run<\/h2>\n
Advice to Investors to Avoid Emotional Decisions Amid Market Noise<\/h3>\n
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