No, I do not like economic slowdowns, but it is necessary to separate the good from the bad. This is more so in financial markets, where the bad thrives in droves when markets are in a speculative bubble. Investors invariable lose out as they are sold wrong products at wrong market levels. In a slowdown, bad cannot survive because markets do not help them.
Everyone, from fund managers, stockbrokers, distributors of financial products to agents of financial service providers, go through a weeding process. The ones depending on markets to survive get cast away while the ones who survive despite markets remain and grow stronger.
Investors benefit immensely. There is no more “this stock will go up because I get brokerage” or “this product is good for you because it earns me good commission”. There is only “ this stock is good because of future prospects, good management and good corporate governance” or “ this product is good because it benefits you”. Investors by now will have realized who is after them for commissions and who really cares about their money.
I have personally been through four boom and bust cycles and find that every boom throws up new players and new investors, while every bust leads to a weeding out process. The players who survive go on to take advantage of the next boom.
Investors too learn a lot. The first lesson they learn is learning to separate good advice from bad advice. The second one is, they require good advice in treacherous markets. The third is that markets will also give them losses. The fourth lesson is brands will not deliver returns it is people. The fifth is that while everyone claims to be a market expert, there are really no experts in the market. The sixth is that they themselves are better qualified for investing than the ones telling them to invest. The seventh is the past ill advised investments are proving expensive to maintain. The eight is that no media can actually add value to them. The ninth is that it pains when hard earned money is lost due to poor investments and the tenth is that advisors who massage their ego’s are there to make money for themselves.