Is Technology a bottomfish!

This is a very difficult market.

Cramer says there is “always a bull market somewhere”. I can’t argue, but it is a dangerous statement to the average investor.

In Venture Capital, despite the tech weakness, Web Delivered Services is hot. Take Fred’s post below:

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 they back up the trucks, they take away all of the furniture.”

It could be argued that maybe the masses are wrong and maybe tech is just too hated. Take a look at what Lehman’s Degraaf has to say (page 5). He’s pretty smart too.

Maybe IPO’s aren’t dead. Maybe, like the crazy and creative IPO that Google pulled off, some CREATIVE bankers decide to HELP other tech companies pull off more IPO’s just like Google. Maybe, a new mean lean IPO bankthat cares less about fees and more about the public market and back-end success gets created.

If I could invest in something like that, given the right talent and funding – I would MAKE THAT BET!

In fact, maybe this is the perfect time to be a venture capitalist and the trend is just getting going.

Maybe, all the new land tycoons take 5 percent of their real estate profits off the table to invest in domain names and $100,000 WEB DELIVERED SERVICE start-ups.

Just a thought.