Three Bullet Points from Online:
Here's how business cycles always work:
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The economic downturn starts and highly levered companies go out of business
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Strong companies make sacrifices to weather the storm
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Economy picks up again and strongest companies have less competition and do better than ever
This bubble is no different.
My Thoughts:
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.