Our very own Stephen Auth, a chief investment officer of a mega-fund and a friend with 40 years of practice on Wall Street, reached out yesterday. His advice was simple: don’t mess with it but don’t forget it is an animal-bred virus and it will go away. Well, it may have mutated into a human bug but factual evidence shows it is being contained.
More importantly, Neo Ventures believes that we will avoid recession. Small enterprises are better prepared and the big ones are more prepared than in 2009. The economic fundamentals prior to the virus and the policy of the Fed are both solid feet. One more time, America-lead rebound will end the story. This time, America also has a silent partner: China.
The efforts of the Chinese government and people have been nothing short of astonishing and so has been the result. This is a superpower, re-asserting its role and influence, as it helps the rest of the world come out from a freeze. Our bet: by mid-2021.
In best shape, we believe companies enabling human safety and remote work stand to make a killing. We like Raytheon and Zoom. The Zoom example is below. We call them off-handers. Neo has access to off-handers proprietary deal flow including dealing with forest fires, human depression and digital artworks. All of these are both off-handers and resilient again tough cycles – and they are also a great response to the current situation as they provide real time solutions to needs we face.
I am tempted to quote a certain German author from 1929: All Is Quiet on The Western Front. For those of you at home, the movie was ranked seventh-best American epic film. While not everything is yet so quiet, we can look ahead because the skies are clear.