It's not sentiment that connects public to private markets, it's the literal capital pipes that allocate money across assets. When people realize there is a ri

It's not sentiment that connects public to private markets, it's the literal capital pipes that allocate money across assets. When people realize there is a risk they will not get liquidity for their investment, they try to sell to get cash. That sale sucks liquidity out of the market, the dollars have to come from somewhere. Which is why what's going on in energy markets, or China, or Europe, matter for startups. Startups are by their nature consumers of liquidity, as founders sell equity to get cash to build stuff. When other assets (public market stocks, energy bonds, CNY, European bank stocks) are being sold to get cash, this competes for those dollars. When there is enough selling that asset prices fall, then assets that compete for the same capital/liquidity also have to reprice lower to attract capital. Not to mention investors realize they are literally less wealthy than they thought yesterday. It's not something as ephemeral as sentiment , it literally works like a machine. I call it #theCapitalCycle https://medium.com/@alexanderbcampbell/a-turn-in-thecapitalcycle-4fd0b6193579#.ce9oqj440 https://medium.com/@alexanderbcampbell/a-turn-in-thecapitalc...