A Market Dichotomy

The Nasdaq is down 9% for the year.

Inflation is up.

Growth is down.

Stagflation is looming.

The real estate market peaked last year and the best we can hope for is a soft landing.

Most hedge funds are having a tough year.

The economy and the capital markets are not a pretty sight.

Yet the venture capital market, particularly for web delivered services, is white hot.

Valuations are up, amounts raised are up, fund formations are up.

This can last for a while, but not forever.

Over long periods of time the venture capital market and the NASDAQ are highly correlated.

As my former partner Bliss McCrum used to say, "when the back up the trucks, they take away all of the furniture."