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To: proxy_user
If an ETF selling off is causing a sector to crash, you can pick the good stocks in that sector and buy them at bargain prices.

If you can do it..... in a few seconds................

30 posted on 11/22/2016 10:31:54 AM PST by Red Badger
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To: Red Badger

It depends. A typical ‘flash crash’ lasts about 15-30 minutes. A real sell-off based on the outlook for a sector takes place over days or weeks. An example of this would be the oil stocks in the first 6 weeks of 2016 - sure, oil went below $30 a barrel, but an integrated major like XOM can still make money, and it was entirely irrational to dump stocks like MPC, since refiners gain from low oil prices.

I had enough oil stocks already, so I bought IP during this crash - dirt cheap.


31 posted on 11/22/2016 10:48:24 AM PST by proxy_user
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