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Why do stock market events cause stocks to go on sale?\n\nLet\u2019s say that cotton prices start to go nuts because of the Arab Spring. Maybe they\u2019re not going to harvest Egyptian cotton crops, so cotton prices go from $1 to $3. The guys who own companies that depend on cotton prices to be low look at the price and say, \u201cOh no. It\u2019s going to take over a year before cotton prices come down, I need to get out of this company.\u201d \n\nThis happens even if there isn\u2019t anything wrong with the company, it\u2019s just going to have a bad year. That company could go from $45 to $15 simply because there are no big buyers. They all get out of the company on momentum. This is what causes stock market prices to change.\n\nSo, how do Rule #1 Investors take advantage of stock market events?\nRule #1 investors buy for the long term. They wait, and when they see something that\u2019s on sale because the big guys have sold it off, it takes them just a few seconds to get in there and take advantage of these stock market events.\n\nIn this episode of the InvestED podcast, Phil and Danielle discuss stock market events more in-depth, and how to take advantage of when stocks go on sale.\n\nLearn more about buying stocks on sale with the Four Ms Guide! Click here to get started: https://bit.ly/3hRUZs1\n\nTopics discussed in this podcast:\n\nStock market events\n\nHow to find stocks on sale\n\nUncertainty in the market\n\nWarren Buffett\n\nTesla\n\n\nLearn more about your ad choices. Visit megaphone.fm/adchoices