More pain ahead?

The Fed just announced that they are raising interest rates by 75bps again. It seems to be a recurring theme of 75bps increases. I saw a few rumors that they were going to go with a 100bps increase this month, but I guess sticking to what you’ve done was a bit easier.

There was a lot of optimism that the markets were going to settle in the fall and inflation would be beat by now. I think this may be a much longer bear market and recession than we think. All signs point to the fact that there will be more pain ahead before things get better.

My hope is that things will at least stabilize a bit. On the private markets, VCs are sitting on a lot of dry powder and will need to deploy that at some point. A stable market allows investors and companies to be able to at least get to a good comp and deploy some capital.

Our portfolios may be down for a bit, but the innovation and progress shouldn’t stop.