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Capitulation is one of those rare and exciting moments that offer the greatest opportunities for investors. You might also call it “revulsion”; the moment when an exit from a position turns into a flood, when a selloff becomes cathartic and sets a base for a new rally. Beyond the times when markets collapse under their own contradictions, they can also force important players to capitulate — by forcing finance ministers to give up on a currency peg, for example, or compelling central banks to reverse their monetary policy.
