Post by @boyeryy144120 • Hey
I rarely talk about markets but here is my take on all this chaos.
*Not financial advise*
1. This downturn has more to do with “macro” than any fundament
Comments
- 7. But that all is rationality, as legendary economist Kenyes said, “Markets can remain irrational longer than you can stay solvent”. So make sure to hedge properly and never ever have more than what you could afford to loose deployed in the markets. Stay safe!
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- 6. Prediction : Since its macro driven, in 3-6 months when FED has raised rates by 50-75 bps 2-3 times and inflation has “definitively” peaked, large investors would be able price-in any further hikes and markets will be able to find bottom and things will become normal
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- 5. Projects who have strong treasury with ample runway for 2-3 years and those who would be able to build aggressively through this time will have potential to build generational value. I can confidently say that @0xPolygon is one such project, there are many others too
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- 4. Projects with some Product Market Fit playing in big enough TAMs will still be able to raise funds. If you are unable, then the focus should be to somehow survive; take consulting work, cut costs, just survive. Those playing only token games will be wiped out, for good.
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- 3. In private markets, A lot of VC funds have raised a LOT of capital, even though they will be careful in selecting their bets, and acceptable valuations would be much lower but I expect the thesis based VCs to keep deploying. Most of them will also play in liquid markets.
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