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Sure, which also happens every time there's a big down move in the market. Actually per prospect theory it is often the best performers that get sold first:

https://en.wikipedia.org/wiki/Disposition_effect

Regardless, my point is smart stock pickers will come in and bid up companies that get oversold. No damage done unless you tried to time the market in your IRA and sold at the bottom. People who continue automatic purchases of broad indexes will be happy (at some point!) for the discount.



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