Naturally, they commence by pointing fingers at Wall St. (hint, hint, hint) and the lack of regulatory oversight (although, I think Sequoia is probably more concerned about potential new regulations). Paraphrasing some of their points that are relevant to the IT sector:
- In terms of the standard econo-metrics, this crisis appears to be unique and therefore recovery may take much longer.
- If you want to see the future, look at Japan's recent economic history.
- Manage cash expenditures and focus on quality. [That last one's a doozy. QUALITY ... What's that!?--ed.]
- Advertising markets are cracking. Retail and e-commerce are deteriorating. Mobile is not immune.
- IT spending is now being scrutinized more than at any time since the 2003-2007 period. [??? But 2007 was only last year.--ed.]
- These concerns have triggered a sudden and unexpected drop in business activity.
Although these comments are based on US market data, we do live in a global village . Here is the Sequoia presentation.