Chapter
How Correlated Assets Affect the Market
50:57 - 56:23 (05:25)
When highly correlated assets go down in the market, they go down the most due to having the most investors, making them the most highly trafficked in an upmarket. Investors can predict potential impairment by calculating correlations and overlaps, which can lead to suffering from market beta in a downcycle for investments with high correlations and overlaps.
Clips
The more highly trafficked an investment, the more likely it will be to decrease as the market goes down, and people should look into their portfolio to try to figure out how likely their investments are to get impaired.
50:57 - 54:11 (03:13)
Summary
The more highly trafficked an investment, the more likely it will be to decrease as the market goes down, and people should look into their portfolio to try to figure out how likely their investments are to get impaired. Entry price can also significantly affect your investment.
ChapterHow Correlated Assets Affect the Market
EpisodeE101: Ye acquires Parler, Snap drops 30%, macro outlook, VC metrics, valuing stocks & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
An analysis of portfolio overlaps can show where losses due to the market beta might occur, even in downturns when VCs can benefit from market beta and upcycling.
54:11 - 56:23 (02:12)
Summary
An analysis of portfolio overlaps can show where losses due to the market beta might occur, even in downturns when VCs can benefit from market beta and upcycling.