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.