Three Bullet Points from Online:
Here's how business cycles always work:
The economic downturn starts and highly levered companies go out of business
Strong companies make sacrifices to weather the storm
Economy picks up again and strongest companies have less competition and do better than ever
This bubble is no different.
Basically, chasing profits and leverage for so long and being rewarded for it, the economy was out on a limb. Like a sports car, optimized for speed (profits) and not a 4WD (durability). Notice, even previously functional vehicles like Jeeps became built for luxury and status signaling instead.
The way to invest would be to look for companies that are Class A companies, which also will survive, and have been discounted unnecessarily...maybe unfairly...with the idea that the fundamentals continue.