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Nice illustration. But what does it mean? Recognizing that the phrase "when the chips are down" is from poker, and that it refers not to the time when the bets have been placed but to the time when your stack of chips has dwindled–when losses have been more prevalent than wins–it means that prolonged losses will cause the mass of common investors to abandon stocks. And that's what creates bargains for patient value-oriented investors who can see beyond the troubles of the present.