The ongoing market pullback has officially sent us into bear market territory.
And make no mistake – this downturn will have a massive impact on our capital and personal investments for years to come…
The most recent inflation reading measured by the Consumer Price Index (CPI) is 8.6%. So our money is now worth 8.6% less than 12 months ago.
The sad truth is that the real inflation figures are likely much higher. Inflation will continue to eat away at the value of our capital for years to come.
We’re feeling the effects every time we fill up our gas tanks… buy groceries… or even when we consider placing our capital into new investments.
With the potential for more aggressive interest-rate hikes and rising inflation, many of us simply don’t have the appetite for any risk. And as investors, we’re seeing what happens when panic rules the markets…
All this volatility is scaring investors away from potentially groundbreaking investments.
So the natural question here is… Where should investors turn next?
The Next Step for Careful Investors
Over the last decade, we saw a series of major milestones for the public markets. Record levels of investment capital found their way into hundreds of promising startups.
With record-low interest rates and an influx of private funds looking to bring the next Amazon-like deal public, we saw investment banks and hedge funds willing to underwrite the most promising IPOs of the last decade – tech companies like Uber, Snap, and Tesla all thrived in this environment.
And 2021 was a banner year for tech IPOs. Over 951 tech companies accessed the public markets last year… a record-setting tally by any measure.
But all that has rapidly changed. And now we must take certain factors into account…
Inflation and rising interest rates are here to stay. The CPI is now at its highest reading in decades. And it’s likely to rise before the end of the year. These factors will naturally make investors more averse to risk.
And the broader stock market pullback has created one of the most toxic environments for IPOs in recent memory.
In Q1 2022, just 143 IPOs debuted. For perspective, a record-setting 260 listings debuted in Q1 2021. We should expect to see a slowdown in public listings continue at least through the end of the year.
I understand why there’s so much negative market sentiment.
But I need to make one thing clear… I don’t share Wall Street’s pessimism. Those factors I mentioned above may linger with us for years… but they won’t stop the biggest innovators in the private space from reaching the public markets.
And I’m watching a whole pipeline of unique assets poised to do just that…
Mandated Money
I’ve been following a singular trend that’s allowing investors to invest in the most exciting private companies – before they go public.
And they have special safeguards in place for investors. These investments grant us the contractual right to get our money back within a set timeframe. Even more interesting, in some situations, these investments allow us to lock in returns in advance.
That’s the key to these deals – what I like to call “Mandated Money” deals.
And they provide a path for early investors to gain exposure to many other tech trends I follow across my newsletters – everything from financial technology and gaming to the next generation of the internet fueled by blockchain technology.
And I believe these deals are key to protecting investors’ capital during periods of great volatility.
So on Wednesday, June 22, at 8 P.M. ET, I’m going to explain why we should pay special attention to these deals… and show you the next wave of exciting deals in this lucrative sector.
It’s all happening at my special event. You can sign up for it right here. I hope to see you there.
Regards,
Jeff Brown
Editor, The Bleeding Edge