Has Santa made an early appearance this year? It certainly seems so according to the Wall Street traders. The jolly character in a red satin suit took the form of Jerome Powell, the Federal Reserve Chair, as he read out the minutes from the latest Federal Reserve meeting. While listening to the speech, it struck me as the typical “fed-speak” where two contradictory things are said at the same time. However, the traders had a completely different reaction, finding the statements to be highly bullish, suggesting the possibility of up to three rate decreases next year. (Source: WSJ)

All three indices ripped 1.4% and Bitcoin went up to 43k. The 10-year treasury also went below 4% and ended at 3.98%. I am not trying to predict macro but this all sounds pretty positive. I am skeptical however as I have been conditioned to hear the fed say one thing and do another.

We shall witness the future course of the startup market. I have a hunch that venture capitalists have gleaned invaluable insights and will exercise more caution in valuations. The renowned Bill Gurley expounded upon the concept of capital swiftly exiting the realm of risk in the venture community, and its gradual return over an extended duration. I am inclined to trust his wisdom and shall persist in adopting a prudent approach.