Halloween Special | Crash Ghost Looming, Scary Times Ahead!
Updated: Feb 1, 2019
With the U.S.-China trade war, rising interest rates and high corporate valuations but lower earnings, we strongly recommend investors to adopt a very conservative and defensive stance in their investments. Even Warren Buffett has been observed to be sitting on a huge pile of cash, which may indicate that he believes the market is due for a turn.
Preserve Your Cash, Wait For Opportunities
However, we see this as a great opportunity to preserve cash and incubate innovative startups that will emerge as future industry leaders once the huge correction is over. Top unicorns today such as Facebook and Google emerged from the froth after the Internet Bubble burst to become industry leaders, and our VSC Ecosystem Inc. (VSC) and AI Chips Co. will become such leaders in the blockchain and AI spaces respectively.
Similarly, VSC’s anchor investor, Morningside, launched its TMT Fund I in the wake of the 2008 financial crisis and accurately recognized that post market crash was the most ideal time to invest in the best startups. The result? Morningside TMT Fund I has generated a 100x return to date. We at VSC Ecosystem Inc. (VSC) will adopt the same investment principles of Morningside to provide great returns from good ventures such as AI Chips Co., which will be showcased on VSC’s equity co-investment platform VCLink in Q1 2019.