downturns are more due to the different timescale between investments and business cycles / market saturation. Current Market returns are due to previous allocated capital, investor chase past results hoping the trends continues, but market saturation or other shocks happens, scaring investor who rush to liquidate their positions, cratering the prices. Companies to keep certain profitability levels in the short term cut costs to the extreme, slowing growth/expansion and laying off workforce. IMHO to contain bubbles and busts, a lot more business/market data should be aviable to make informed investment decisions and make long term investment fiscally advantageous compared to shorter holdings
the stressors actually strengthen which is why I brought up Taleb.