Nearmap on Your Money - 2nd Apr 2019, page-25

You see in a boom everything rises. They rise to ridiculous valuations and PEs. When the market crashes everything reverts back to normal PE between 10-12 if your lucky otherwise they just sink further into the doldrums. Companies that make money get a focus and all growth companies that dont make a profit to equal to the 10-12 PE mark get a thrashing. THis has a huge psychological effect to the wealth factor, portfolio etc. Because nobody knows when all this happens and when it happens it is too late they find a proper strategy of survival in the long run - shave off profits and gradually build the cash to fall onto your side.