Economies also suffer major extinction events. If you were invested in a public company listed in China’s stock market in 1949, you got wiped out when the communists took over. Ditto Russia in 1917. There have been other markets that have gone to zero, or near zero, due to some major economic or political quake. Lots of businesses die all at once (or over a short period of time), just as in a biological extinction event. Of course, there are minor extinction events, too.
Bubbles that pop and leave a trail of bankruptcies. Or when governments change the rules of the game in a severe and sudden way so that companies have to scramble to adjust or just go out of business.
~ Chris Mayer, "Extinction & Survival," Woodlock House Family Capital blog, August 14, 2020
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