Venture Capitalist Shervin Pishevar Predicts A Tumultuous 2018 For US Economy

Successful tech investor Shervin Pishevar understands the modern marketplace. He has used the 21st century economy to grow his wealth via stakes in Uber, Airbnb and other tech ventures. Additionally, he has helped launch science companies that could change the world, like Virgin Hyperloop One. In early February, Pishevar reacted to a downturn in the U.S. stock market with a storm of posts on Twitter that spanned 21 hours. His first tweet was ominous.

A Massive Collective Drop

“Some thoughts on financial storms I seeing brewing ahead,” Pishevar wrote. He then continued, “I expect a 6000-point drop in aggregate in the months ahead. Here’s why.” The experienced capitalist then followed up with 49 clarifying tweets that backed his case.

Financial Instruments that Threaten a Recession

While Shervin Pishevar sees multiple potential culprits, he cast much likely blame on a class of managed funds called exchange-traded funds. Known by the abbreviation ETF, this tool, in theory, allows investors to diversify their stock portfolios by purchasing one ticker symbol. Alas, Pishevar believes these tools are fraught with trouble. “All volatility indexes are suspect for trading,” he wrote, and he continued, “24 ETFs with a combined market cap of near $6 billion. The inverse ETFs are over $3 billion of that and are at essentially zero overnight.”

The U.S.’s Lost Advantage

Also, Pishevar does not want the United States to remain complacent in the illusion that it has a stranglehold on Silicon Valley’s tech industry. He tweeted, “As I’ve said before, Silicon Valley is no longer a physical place but an idea that’s gone viral. Entrepreneurship is a movement. Borderless!”

Global Powers Advancing

Further, Shervin Pishevar shared a news story from China that should make leaders in the United States economy shudder. It told of a train station that, in early 2018, was built by a team of 1,500 workers in just one night. Pishevar lamented, “Meanwhile, our infrastructure is in tatters, decrepit and decaying. Our government and companies are trapped in short-term thinking.” Read This Article for additional information.

Shervin Pishevar has stated the problems. Now, leaders on Wall Street and Pennsylvania Avenue must find solutions.



Shervin Pishevar Launches 50-Tweet Storm on U.S. Economy

Shervin Pishevar is a 21st-century economy expert. His resume includes investments in exploding brands and work on future-facing tech projects. In early February 2018, negative events on Wall Street caused Pishevar to initiate a tweet storm via his @Shervin account.


More Drops in 2018


The VC icon began with a stunning forecast about the Dow Jones Industrial Average. “I expect a 6000-point drop in aggregate in the months ahead,” he tweeted. That collective drop would eat up more than 20 percent of the Dow’s value at the year’s start. During the 49 tweets that followed, Pishevar supported his case.


ETFs Are Dangerous


Early tweets in the spree focused on the over-valuation of every investment sector. Pishevar was especially disdainful of the managed-fund class called ETFs. Short for exchange-traded funds, ETFs allow investors to buy into multiple industrial sectors via one stock symbol. In theory, ETFs are sound financial instruments because they are managed by experienced Wall Street players focused on portfolio diversity.


Shervin Pishevar stated a different take on ETFs. “These funds are intrinsically heavily leveraged and biased to low volatility,” he said. He also predicted that ETFs could lead to a new Great Recession because they encourage the type of risky investing that created 2008’s Dow Jones slide.


A Faltering Competive Edge


Additionally, Pishevar warned the U.S. that has lost its hold on Silicon Valley. “As I’ve said before, Silicon Valley is no longer a physical place but an idea that’s gone viral,” he shared.


A naturalized U.S. citizen from Iran, Pishevar then bashed current U.S. immigration policies. “While we build walls, both physical and cultural, to keep out immigrant talent, that talent doesn’t need to come here anymore,” he insisted.


International Competitors Are Surpassing the United States


Shervin Pishevar also talked about the ways in which other economic superpowers are eclipsing the United States on the global stage. Importantly, he linked to a news story about a 1,500-worker team that built a train station in China in one night! “Meanwhile, our infrastructure is in tatters,” he lamented. Visit This Page for more information.


Wall Street and U.S. leaders should heed Shervin Pishevar’s insights.