Re:Endless Doom Scroller
by EGreg on Tuesday August 04, 2020 @09:16AM
(#24049617)
Whoever said, “the only thing we need to fear is fear itself?”
Markets become bearish because there are more bears, it is a downward spiral and a self fulfilling prophecy. Just like Black Scholes option pricing model is a self fulfilling prophecy if everyone starts using it.
As for funding startups, investors can always object. When things are going up they say they dont want to invest in a startup as they want to get the high returns in the market. When things going down they say they cant invest because they need to wait until things go back up and their positions stabilize. I have heard both things from some investors while others invested.
Arguably, the best thing to invest money in during a downturn is a startup that will spend it on internal development, which needs to get done anyway, even if no outside money is coming in, good labor is more easily coming in, and on better more reliable terms. Microsoft and Apple were both founded in a recession.
Markets become bearish because there are more bears, it is a downward spiral and a self fulfilling prophecy. Just like Black Scholes option pricing model is a self fulfilling prophecy if everyone starts using it.
As for funding startups, investors can always object. When things are going up they say they dont want to invest in a startup as they want to get the high returns in the market. When things going down they say they cant invest because they need to wait until things go back up and their positions stabilize. I have heard both things from some investors while others invested.
Arguably, the best thing to invest money in during a downturn is a startup that will spend it on internal development, which needs to get done anyway, even if no outside money is coming in, good labor is more easily coming in, and on better more reliable terms. Microsoft and Apple were both founded in a recession.