In February this year, Shervin Pishevar broke his Twitter silence, and he did so in a unique way. Before that, Shervin’s last post was on December 14, last year when he announced his resignation from Sherpa Capital in the wake of sexual harassment allegations. The twitter storm was long and detailed. It covered a wide range of topics including the US stock market, Silicon Valley, inflation, and immigration.
Looming financial storm
Shervin Pishevar began his Twitter rant by talking of a looming financial storm. The US stock market was turbulent at the beginning of February. Shervin argus that the turbulence will continue in the following few months. He predicts that the stock market will drop more than 6, 000 points in 2018.
What are the causes of the looming financial storm? Shervin Pishevar listed several factors that he believes are to blame for the crisis. These factors include tax giveaways, discrepancies in credit accounts, and increasing interest rates. He also predicts that in the fullness of time, investors will realize that all classes of assets are overvalued.
The effectiveness of government bonds
In the past, central banks have used bonds to recorrect the market through quantitative easing. Shervin Pishevar claims that that strategy will not work this time around. He asserts that the approach has been too overused to be effective.
The Silicon Valley
Regarding the Silicon Valley, Shervin notes that America has lost exclusivity. He maintains that America no longer has the monopoly of talent, ideas, and entrepreneurial spirit. Technological innovation is now flourishing globally. Shervin treats this as a bad signal for the short-term economic growth of the USA.
The Big Five Unicorns
Shervin terms Amazon, Apple, Microsoft, Alphabet, and Google as monopolies. He warns that the growing trend of these companies buying out startups will eventually fail the economy. He criticizes the American system for turning a blind eye to the activities of the big five companies.
About Shervin Pishevar
Shervin Pishevar’s 21-hour tweet storm may be full of pessimistic predictions, but his vast experience in finance and investments is a reason why every investor should take his signals seriously. Shervin is an entrepreneur, super angel investor, and venture capitalist. He is a co-founder and former managing director of Sherpa capital. The venture capital fund has invested in notable companies such as Uber and Airbnb.