Escape the Cycle of Fear?

November 23, 2010

We are experiencing strange economic times. Even if you appreciate the idea that economies move through cycles of growth and recession, at the very least, we are muddling through a strange cycle. However, do investors also go through cycles? In the clip below, Vinod Khosla, co-founder of Sun Microsystems, discusses how investors swing back and forth between cycles of fear and greed. In the clip from 2002, Khosla claims we will see the cycle of too much money again in five or six years. 2002 + 6 = 2008. Interesting…

After the meltdown of 2008-9, we continue to experience stagnant growth in 2010. So is this current economic cycle due to investors being stuck in a cycle of fear? In Khosla’s words, we are at a point where no one “wants to believe in an upside.” If so, how do we get out of it? These are enormous questions, but a possibly prescient Khosla suggests we can move out of this cycle once “a few things squeak by.” This is where entrepreneurs come in. Maybe it’s time to start something.

Are we in a cycle of fear?

If so, are you ready to escape the cycle and put your next great idea into action?

Watch the video and share your thoughts.

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