If and when panic selling occurs in stock markets, does that devalue the price of stocks and render the market almost worthless, because more and more stocks are introduced into the market (increasing supply) and there is no demand?
See the 1929 Wall Street Crash.
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That was how many people lost their life savings in the most recent recession. If you listened to the fringe loonies, you lost it all. If you ignored them and listened to REAL advisors, you gained money, like I did. The market has ALWAYS returned with a gain, including RIGHT NOW.