3 Winners and 2 Losers in a Stock Market Downturn
The boreal forest of North America and Russia is considered the largest alpine forest in the world. Besides its immense size, this forest has something truly unique about it. Every so often, it's ravished by an inferno of forest fires. While this sounds bad, it's both natural and beneficial. The fires purge the woodland of all the excess shrubs and ground cover so new trees can grow.
You're probably wondering what this random nature factoid has to do with the stock market. Just like the boreal forest, the stock market needs occasional purging. Instead of weeds and shrubbery, it becomes overrun with rampant speculation and an overall lack of fundamental analysis.
The "fire" is a market crash, not unlike what we are going through right now, and it's 100% necessary for a future healthy stock market.
Source Fool.com
