Once the share price starts to fall & it becomes a smaller percentage of the index, all those who buy shares tracking the index will be compelled to sell. It will become a stampede.
The lower the CBA price goes, the more shares will be sold, forcing the price even lower.
Eventually, one of the large shareholders will say sell & all hell will break loose. He or his institution will, along with his mates, sell at the top & the long term & HotCopper, irrational, no correction shareholders will still be hanging on when the share price falls $40.
I sell soon, make over $33 per share from my purchase price, you hold on & lose $40 per share. I have the cash to buy back in, your cash is still tied up with original shares.
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