A well-versed investor, Shervin Pishevar recently logged into his @Shervin Twitter account to discuss troubles he sees in the American economic system. He distilled his points into 50 tweets that took him 21 hours to post on February 5 and 6, 2018. Here are his biggest thoughts.
The Dow Will Go Down
Shervin Pishevar’s tweet storm coincided with a scary stretch for the United States stock market. During early February, the Dow Jones Industrial experienced its worst week since the Great Recession that began in 2008. Pishevar predicted that things would worsen. “I expect a 6000-point drop in aggregate in the months ahead,” he tweeted. In the tweets that followed, he gave evidence supporting his position.
First, Shervin Pishevar listed reasons for the downturn. They included rising credit deficits, increasing interest rates, tax cuts that were not attached to reduced spending and his opinion that the bond market is not deep enough to gently absorb repeated heavy blows. He also said factors exist that could lead to another prolonged recession.
Additionally, Pishevar decried exchange-traded funds. “All volatility indexes are suspect for trading. 24 ETFs with a combined market cap of near $6 billion,” he tweeted, and he continued this point in the next tweet. “The inverse ETFs are over $3 billion of that and are essentially zero overnight,” Pishevar wrote. Read This Article for more information.
Silicon Valley Is Now a Concept
Pishevar also warned that America has lost its competitive advantage in the substantial niche of venture-capital-backed innovation that has been centered in Silicon Valley for several decades. “As I’ve said before, Silicon Valley is no longer a physical place but an idea that’s gone viral,” he wrote. He then criticized U.S. immigration policy. “While we build walls, both physical and cultural, to keep out immigrant talent, that talent doesn’t need to come here anymore,” he noted.
Shervin Pishevar has helped launch projects that will shape the distant future, like Virgin Hyperloop One, and explosively growing tech brands, like Uber and Airbnb. He warrants undivided attention.
Will leaders on Wall Street and in D.C. listen to Shervin Pishevar’s message? Doing so would be wise.