The great unknown8/5/2023 ![]() ![]() Therein lies the problem as where we go from here is extremely uncertain. This begs the question of what we should do now. ![]() 40% of Nasdaq stocks are down over 50% peak to trough in every tech sector. Since then, the market has corrected especially for tech stocks and crypto. Plus, we usually sell only 50% of our position. This is not because we did not believe in them, quite the contrary, but they are typically the only positions we can get some liquidity in. We took my macro concerns to heart and sold secondaries in some of our high-flying winners. We were keenly aware that while we think we do a good job at picking investments, we were also benefiting from the frothy environment. Unusual behavior like retail driven short squeezes and extraordinary volatility all suggested we were at or near the top of the market.Īt FJ Labs, we were of course massive beneficiaries of the bubble as all our investments were being marked up insanely rapidly. We were seeing frothiness in equities, crypto, real estate, land, commodities, and bonds with a full-on speculative bubble in SPACs. A year ago, in Welcome to the Everything Bubble, I argued that an unprecedented combination of loose monetary and fiscal policies was fueling a bubble in every asset class. ![]()
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