Private Markets. Unlocked. How Mind Over Markets Shapes Investment Outcomes

Many of you know I had the great fortune to grow up in San Diego during the ’70s and ’80s. For some people, those years were all about mega-malls, Walkmans, and neon leg warmers. But for me, it was always about the ocean. The endless horizon and the steady rhythm of the waves were my faithful companions. Surfing taught me at an early age that success isn’t about chasing every wave; it’s about patience, timing, and the discipline to wait for the right opportunity.

That lesson has guided me through decades of investing. I’ve managed more market cycles and crises than I can count, but the principle has always remained the same. Those who stay patient and disciplined can ride through periods of uncertainty, while those who chase every wave risk falling short and financially disappointing clients. The greatest risk most investors face isn’t the uncertainty of the markets – it’s how they respond to it.

The Psychology of Public Markets

Stock and bond markets have always been fascinating to me because they reflect human psychology in real time. Every headline, earnings call, or whisper can be mirrored in daily trading activity. That kind of immediacy is a double-edged sword. On one hand, it tells you what your investments are worth if you wanted to sell them right now. On the other hand, it means those values are constantly pulled around by emotions and behavioral biases like fear, overconfidence, or herd mentality.

Financial advisors understand this perhaps more than anyone. Their role goes far beyond investment management and financial planning. They provide a steady foundation their clients can rely on to help them weather the full spectrum of investor emotions, especially during challenging market conditions. A clear example of this came on April 3rd, 2025 when the S&P 500 dropped 4.8%, the Nasdaq fell nearly 6%, and the Dow lost almost 1,700 points (4%) in response to that day’s tariff announcements.

For most investors, the instinct was to pull back. But advisors, working with AssetMark’s support, counseled patience. They reminded clients that their portfolios are built for resilience and that reacting to every headline can often do more harm than good. Just a few months later, equity markets had not only recovered, but moved on to new highs.

Finding Balance in Your Portfolio and Mindset

In many ways, private markets embody the very advice advisors give in critical moments like these: tune out the noise and stay focused on the long term. Private markets don’t trade on headlines or daily emotions. Instead, they’re valued based on fundamentals. This doesn’t eliminate risk by any means, but it does help dampen the noise and reduce the feedback loop that fuels impulsive decisions.

Without that constant price feedback, private markets require a different behavior by investors that can understandably be hard to come by: patience. While the illiquidity of private markets may be a weakness, in some cases it can also be a strength. It requires patience and gives investors space to think long-term. It reduces the impulse to react and allows investment strategies to play out over years, not days.

The contrast with public markets is striking. The average stock holding period for investors has fallen to less than six months. Pressure to respond to quarterly earnings reports, shifting investor sentiment, and short-term performance expectations has steadily shortened investment horizons in public markets.

Since private market strategies are built around longer holding periods, they allow for a focus on fundamentals like cash flow, business transformation, or asset development. This approach not only reflects the long-term advice advisors give their clients but also aligns more naturally with the time horizons of many long-term investors and their goals. 

A Foundation for Long-Term Thinking

Markets will always reflect human behavior. Prices often overshoot, prevailing narratives shape sentiment, and the crowd invariably arrives late. Successful investors recognize these tendencies in both the markets and in themselves.

In different ways, financial advisors and private markets can provide investors with a foundation that encourages patience, supports stronger investment habits, and provides a steadier footing on which to view their long-term investment horizon.

In my experience, keeping your eye on that horizon helps you spot the best waves as they form and gives you time to position yourself to catch them. It’s the discipline and steadiness during the wait that can often lead to the most rewarding rides, whether on the water or in the markets.

Important Information

IMPORTANT INFORMATION ABOUT THE RISKS OF INVESTING IN PRIVATE MARKETS

Investing in private markets involves significant risks, including the risk of complete loss. Past performance does not guarantee future results.

Private markets are often illiquid, meaning an investor's ability to sell may be limited for extended periods of time. Investors with a future need for liquidity, i.e., access to cash, should carefully consider if private markets are appropriate for their particular financial situation.

Investing in private markets is intended for experienced and knowledgeable investors who are able to bear the risks of the investments. Financial advisors should conduct a due diligence review of private markets to determine if they are appropriate for their client's financial circumstances, including goals, risk tolerance, and overall portfolio objectives.

8410927.1. | 09/2025 | EXP 09/30/2027