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.