Episode 252: On December 1, 2017 ABC news released a story that former General Michael Flynn would testify that President Donald Trump had directed him to make contact with the Russians during the election. The markets experienced a flash crash, the Russell2000 dropped more than 2.5% in less than 30 minutes. Some individual stocks and ETFs were much more volatile. Overall, the markets quickly recovered and closed out the day relatively flat.
What can you learn from this event?
- Only those with access to immediate order execution could profit from this event.
- Those using Stop Loss Orders most likely sold at the worst time.
- Past blog post: https://www.investablewealth.com/flash-crash-hazard-of-stop-loss-orders/
- Past podcast episode: https://www.wealthsteading.com/227/
- Headlines are generally meaningless.
- JFK assassination comparison: https://www.youtube.com/watch?v=f3_9dZ0_wRY
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