Even the bears have stopped talking about a great depression. Now the question is whether we will see a recovery in the second half, or a transition to a normal recession. With some tech stocks up over 50% this year (including Apple), we are predicting a surge in transactions in the second half, even if we are still in a recession. Public companies will be more open to acquisition proposals now that their stock is up. Also, public companies across the board have raised record amounts of money in recent months through stock and bond issues. Those funds, combined with growing balances from cash flows, have given buyers a lot of dry powder. Meanwhile the transition to subscription, virtual, cloud and Saas delivery models has forced all vendors to build new technology and channel roadmaps that will require R&D investment and acquisitions investments that will have to be made irrespective of macro economic trends. The bottom line look for an M&A surge in the second half.