My friend and partner Charlie sums it up here in this chart and tweet:
I hate the terms bull and bear market, overbought, oversold, cheap, expensive and price targets.
Investing is about money management and all of us have different risk profiles.
I have a pretty good view of greed and fear from my seat at Stocktwits and as a long time investor in startups as a first check writer.
The last twelve to 18 months was a FOMO era.
They will say that inflation and interest rates killed this great market run, but as someone watching and writing about investing every day here I knew it was going to be supply. Supply is a bitch.
I have been pretty conservative but it still has been a brutal six months for anything I own or like in software.
Now the media will hop on how bad it is because the ‘bear market meme’ is just getting started.
As a stock investor it is easy…stop buying.
As a seed investor the last 12 months have been a lot of work to sit on my hands as I say no to high prices.
As a seed investor with 85 percent of our fund 4 to invest in software startups, I say hell yes…hit me up (but have a look at stock prices first before you mention your valuation).
This is a GREAT time to have cash and be investing or an entrepreneur
In 2006 VC’s had too much power.
In Facebook era…founders had too much power
In most recent era…too much liquidity created an environment of sloppy founders and investors.
This reset was due and if the FOMO era is indeed over, I am thrilled.