Legendary venture capitalist Fred Wilson says 2019 might be a “doozy,” leading investors to be cautious. Cryptocurrency markets won’t be a “safe haven” amidst global uncertainty but:
“There will be signs of life in crypto land in 2019.”
Wilson believes the U.S will see a change in presidents this coming year. This will affect the economy and capital markets.
“The US equity capital markets enter 2019 on shaky ground. Though the last week of the year brought us a relief rally, the markets are dealing with higher rates, some early indications of a weaker economy in 2019.”
He expects the S&P 500 to fall considerably and interest rate hikes to be passed on to consumer and business lending.
— avc (@avc) January 1, 2019
“When it gets more expensive to borrow, marginal projects don’t get funded. And what happens at the margin has a much larger impact on the economy than most people understand.”
With Brexit looming, European businesses will also be on the defensive, says the Twitter investor. And:
“Probably the biggest unknown for the global economy is the resolution of the ongoing trade tensions between China and the US.”
This and a slowdown of GDP in China will “take the most powerful engine of global growth off the table this year.” It’s not all bad from Wilson though, he believes startups and the technology economy is “somewhat immune.”
Wilson actually expects 2019 to be a “solid year” for technology companies and startups. This, as we continue to move from an “industrial economy to an information economy.”
Cryptocurrency will Bottom Out and a Bullish Run Will Emerge
“I think we are in the process of finding the bottom on the large,