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The big losses of the biggest companies can swing the
market indexes to look like the whole market is in
trouble when actually the true story is quite different.
If the big company’s stock price is falling, then
investors are losing a lot of money, because the bulk of
investment dollars, about 80%, are tied up in these stocks, mostly through institutional investments and
mutual funds.
Here is an example of what the market can really be
doing:
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