Corrections

I had coffee with an investor who is also one our biggest partners at Secfi yesterday. She asked me my thoughts on the stock market right now and if I thought this was a permanent correction.

My response was an easy no. My view is that this is a correction from the effects of H2 of 2020 and all of 2021 when we saw money haphazardly flying into companies at ridiculous valuations. It was happening in the private markets and public markets at rates never seen before.

No one should really be surprised that there’s a pullback or a correction. The aspect that caught most people offguard is the severity of the pullback as most tech stocks are down 50-80%.

I think we’ll start to see things settle down quite a bit in the coming weeks. The Fed has signaled that the fun and games of (nearly) free money is over and investors are adjusting for that.

I don’t think we’ll see another V-shape recovery like we did in 2020, but I do believe that tech and growth stocks will rebound eventually. When that will happen is the million dollar question of course.

In times of uncertainty, I like to stick my guns. Tech is the future and I’m still long a lot of my portfolio. There will be better days ahead.