Sentiment

I wasn’t old enough to be working full time during the last recession, but I can’t remember when the sentiment has been this low. This is also including the COVID pandemic. At least during COVID, people expected COVID to end and it became a matter of when, not if.

Today, the New York times had a clickbaity article titled “It’s Doom Times in Tech”. The subtitle ponders the question, “Will this meltdown permanently damage the tech world, or is this one more temporary blip?”

I laughed when I saw the headline. People need to start realizing that the last 1.5 years were the anomaly. There was too much cash in the system and valuations were too ridiculous as a cause of that. Yes, we’re in a market reset. Comps are now below the historical averages. I expect comps to reset back to the historical averages soon enough.

What a lot of these doom and gloomers are missing are that the comps were out of whack last year. While a 80% pullback in valuation is not good, these corrections will happen and you can argue they are healthy.

There are going to be tougher times ahead but innovation is not stopping. Great companies will continue to be made. Tech is not dead and will not be dead.