[ericd]

Shares frequently crash in conjunction with economic pullbacks, which mean lower revenue/earnings for companies, which means less spending by those companies, which means lower revenue/earnings for other companies, and layoffs, which means lower earnings for workers, which means less spending, etc etc.

[Godel_unicode]

Shares of individual companies also frequently crash for reasons totally unrelated to economic pullbacks, and thus none of those things are guaranteed to happen simply because a share now costs less.

[ericd]

Sure, but I assume we're generally talking about index/portfolio investing here when we talk about stocks in general?