Venture capital return on investment expectations

Share to Twitter Share to Linkedin Key takeaways An earnings recession may be imminent as consumer spending slows and high costs undercut profits on Wall Street As inflation and layoffs continue, talk of an earnings recession has investors worried Investors can protect themselves by diversifying their portfolios to include defensive stocks The financial world has been sounding the alarm recently over a potential recession in the U.S. and the global economy. The Federal Reserve is still fighting inflation, big tech companies are continuing layoffs, and companies are gearing up to report their 4th quarter earnings. With that, fear of an earnings recession is mounting. Morgan Stanley's investment chief warned clients that incoming earnings reports would underwhelm investors, potentially pushing major stock indexes to two-year lows even if the economy avoids a recession. As we head into earnings season, investors are keeping watch to see if … [Read more...] about What Is An Earnings Recession, And How Does It Affect Stock Prices?

Share to Twitter Share to Linkedin Billionaire Mark Cuban says President Trump is wrong to the think the economy can open up as early as May 1. And when it does open, it will take years to return to post-pandemic norms. “I wish he was right, but he’s not,” Cuban said in an interview on Sunday with Chris Wallace of FOX News Sunday. “People aren’t going to just venture outside. They're not going to go to large gatherings. They're not going to feel confident right off the bat. There’s going to be a lot of trepidation. And that concern is going to lead to people holding back on spending money,” he says. Some people are appalled by the rising stock market as unemployment explodes — over 16 million people have filed for unemployment in just 15 business days due to mandated government shutdowns of business. Retail, restaurants, travel, sports and entertainment have been particularly hard hit. “It speaks of a vast transfer of wealth orchestrated by the … [Read more...] about Mark Cuban Says Economy Will Never Be The Same Post-Pandemic

When Stewart Butterfield and three colleagues sold Flickr to Yahoo for around $22 million in 2009, they quickly identified online games as a promising sector for their next venture. Online technology had come a long way since they launched Flickr in 2004, and hardware was much cheaper. Their new company, Glitch, would run games on the Adobe Flash multimedia player. For what Butterfield calls "a whole bunch of reasons," Glitch failed to take off the way Flickr did. Then, Steve Jobs decided Flash would not be available on the iPhone. With around $5 million left in investor capital, Butterfield and his partners decided to change course rather than give up and return the remaining funds to their investors. Why? While building games for consumers, the Glitch team had also built something useful for themselves: a nameless, digital messaging system with the ability to direct message both individuals and groups of people. Glitch co-founder Cal Henderson had also added a mobile app and … [Read more...] about Slack’s Stewart Butterfield on Getting to $1 Million in 72 Hours

The S&P 500 is down about 3.7% year-to-date as of market open on Dec. 17, 2018. Market analysts have begun to very vocally sound the alarm about the possibility of a bear market — but if you listen close enough, you'll also hear whispers about a looming recession. There are certainly ways that investors can protect themselves against potential losses in the event of a market downturn. Still, market capitulation , or the phenomenon in which investors give up earlier gains when they sell off their positions out of panic, remains a real possibility. To make matters worse, it could be some of the biggest players in the financial world — hedge funds — who end up leading the trend. Where Do Hedge Funds Piece Into a Market Sell-Off? Hedge funds could contribute to a prolonged stock sell-off into the future. According to a recent report by Bloomberg , Sundial Capital Research found that hedge funds as a group bought heavily into American equities, and moreover that many of … [Read more...] about Why Hedge Funds May Still Have More to Contribute to a Stock Sell-Off

Share to Twitter Share to Linkedin What Happened In 2022 Even before a months-long winter engulfed the digital-assets market, 2022 was shaping up as the year that Washington began to get serious about regulating the cryptocurrency business. That resolve was bolstered throughout the year by a series of calamities that included a massive stablecoin failure of terraUSD and the associated luna, with contagion effects that impacted BlockFi, Celsius Network and Voyager Digital exchange that called into question the ability of crypto exchanges to be digital asset custodians that would protect investors’ assets. Essentially, the crypto industry managed to recreate the same risks of the traditional banking system, in which the institutions that were responsible for holding customer’s assets were simultaneously lending funds, leading to leverage, liquidity and capital conflicts. Before the year could end, the third-largest exchange, FTX – previously seen as a … [Read more...] about 2022 Year In Review: Crypto Policy Experiences Massive Turbulence In Congress Amid TerraUSD And FTX Failures

Much of the hope for a revival of India’s jute industry rests on bans on single-use plastics that dozens of countries, including India, have enacted in recent years (Representative Image) Sameer Yasir NADIA, India — When shoppers in places like America take a woven reusable bag to the store, they aren’t just saving the planet. They are reviving a storied industry thousands of miles away in India. Jute, a coarse fibre used to make fabrics like burlap, has been cultivated for centuries in the warm and humid climate of the Ganges Delta. Some of India’s jute factories have been in operation for more than a century, and today the country is the world’s largest producer. But in recent decades, the industry has struggled as less expensive synthetic substitutes have flooded the market. Farmers turned to other crops, cheap labour moved elsewhere and mills deteriorated from lack of investment. Now, though, what had been jute’s weakness is its potential strength. As much of the … [Read more...] about That reusable Trader Joe’s bag? It’s rescuing an Indian industry

Share to Twitter Share to Linkedin Key takeaways Meta announced $32bn in revenue for Q4, beating analysts’ expectations The earnings report this week was laser-focused on solving problems, marking a shift away from CEO Mark Zuckerberg talking about the Metaverse Heavy hints towards further streamlining Meta’s workforce, amongst other cost-cutting plans, caused its share price to jump 20% in a day Meta has reported $32bn revenue recorded for Q4, beating all estimations and putting other Big Tech companies on notice. CEO Mark Zuckerberg’s talk of further efficiencies and cost-cutting measures, with a hint of future layoffs, was a notable departure from his previous double-down on the Metaverse, a fairly theoretical and money sink for the company yet to pay off. Wall Street responded in turn with a massive 20% jump in Meta’s share price, one of the biggest gains in Meta’s history. This is in sharp contrast to other tech companies with more … [Read more...] about Meta Rumored To Make Further Layoffs, Prompting Surprising Market Reaction

Share to Twitter Share to Linkedin For many employees, the ongoing layoff season can be an overwhelming experience. As we have recently seen with the news about Google employees , layoffs can cause significant stress and anxiety not only for those laid off but also those who survive the purge. For instance, Google employees were left feeling anxious about their own job security after a move that saw approximately 6% of Alphabet Inc.’s full-time personnel laid off, including some high performers and those on immigration permits. The lack of “psychological safety,” according to one employee, raised concerns. Employees questioned how they were expected to feel safe again. This seems to be a universal feeling. As a psychologist, I have seen an uptick in people coming to therapy with questions like: “How can I deal with the emotions of surviving a layoff in my high-pressure work environment?” “How can I regain my confidence and feel secure in … [Read more...] about How To Keep Your Anxiety In Check After Surviving A Brutal Layoff Season

Share to Twitter Share to Linkedin Topline: With the coronavirus pandemic taking an increasing toll on the economy, some of the most concerning indicators show that widespread business shutdowns with weekly jobless claims reaching a record 3.28 million last week; meanwhile, leading economists say the unemployment rate could reach 30% as a result of the ongoing health crisis. Thousands of companies across the U.S. are announcing layoffs and furloughing workers and, as a result, jobless claims number hit a record 3.28 million last week as the coronavirus pandemic continued to slam the economy. Goldman Sachs on Tuesday revised its coronavirus projections, seeing a sharper downturn than originally thought: The bank now sees unemployment peaking at 15% later this year—up from its earlier forecast of 9%. The coronavirus outbreak could cost 47 million jobs next quarter, according to estimates by the Federal Reserve Bank of St. Louis. … [Read more...] about How Bad Will Unemployment Get? Here’s What The Experts Predict

The Economic Survey 2022-23 was tabled in Parliament by Finance Minister Nirmala Sitharaman on Tuesday. The document, prepared by a team of economists led by chief economic adviser V Anantha Nageswaran, analyses developments in the economy in the past year and makes projections for the following year. Here are some of the key takeaways. Growth - The Indian economy is expected to expand 7 percent in real terms in 2022-23, following the 8.7 percent growth in 2021-22. The survey notes that the economy had staged a full and broad-based recovery in 2021-22 and was positioned to ascend to the pre-pandemic growth path. Inflation - India’s retail inflation rate peaked at 7.8 percent in April 2022, above the Reserve Bank of India’s (RBI) upper tolerance limit of 6 percent. The overshoot of inflation above the upper end of the target range in India was, however, one of the lowest in the world. Read More Fiscal developments - The government’s finances showed a … [Read more...] about A quick guide to the Economic Survey 2022-23