Venture capitalist Shervin Pishevar embarked on a wide-ranging tweetstorm in February 2018. He expounded on the possibilities of the stock market, Bitcoin, startup companies, and monopolies, among other important topics. The key to Pishevar’s tweetstorm lies in his predictions that the market would dip in 2018.
As of the summer of 2018, these predictions have come true in a moderate fashion. Shervin Pishevar did correctly predict the fall in Bitcoin prices, though the drop has not been as severe as he warned it might be. “Gold will rise in response (to Bitcoin’s fall). Bitcoin will continue to crash but stabilize at 2-5k range and begin a more stable rise over the next 24 months.”
As far as stocks are concerned, the market has experienced a number of sell-offs, but the market has remained relatively stable. The 6,000 point drop that Pishevar predicted has not yet come to pass.
Pishevar touched on many other topics in his tweetstorm. He pointed to the resurgence of China, stating that its dominance in infrastructure could greatly influence the global business climate. He criticized infrastructure in the United States, claiming that “our infrastructure is in tatters, decrypt and decaying. Our government and companies are trapped in short-term thinking.”
According to Shervin Pishevar, technology innovation is moving overseas and Silicon Valley is losing its dominance. Shervin Pishevar warned of the five American tech monopolies: Apple, Amazon, Alphabet, Microsoft, and Facebook. He stated that these five mega-corporations stifled technology investment in the United States.
“Just like Ma Bell, these 5 giants have too much power, stifling startups,” he claimed. “Uber might be the last giant to eke out before it was too late.”
One sector of the economy that Shervin Pishevar is bullish about is space exploration. He pointed to the exciting possibilities of Elon Musk’s SpaceX and Richard Branson’s Virgin Galactic. He said that the companies would “suffer derision” until their core business was successful.
Shervin Pishevar has a unique and valuable perspective on the tech and financial worlds. While not all of his predictions have come to pass, it is worth keeping them in mind as the months go by.
A few months ago, Shervin Pishevar decided to send out a few tweets regarding predictions and thoughts about what’s going on with the economy and other topics. The tech investor had a lot to say, sending out 50 tweets in under 24 hours. One of the things he took up several tweets with was the monopolies in the United States.
Shervin Pishevar identified five monopolies that have too much power:
At the top of the list is Amazon. Shervin went as far as comparing them to Ma Bell, a telephone company that held a monopoly in the United States for years. He warns that the five that we’re dealing with now are even more powerful, which makes sense.
Within months of Shervin Pishevar identifying the power that these monopolies have, including Amazon, there was news on Amazon. Alexa, the virtual assistant built into Amazon products such as Echo, was believed to be listening in on conversations. There was also a significant amount of fear as to what it might be recording and who was listening to the conversations.
While Amazon has done well at explaining that Alexa only records in order to carry out the tasks being requested, people are still hesitant to trust that Amazon isn’t using all of its power for bad.
What I look for founders and teams:
— Shervin Pishevar (@shervin) June 26, 2018
Additionally, there are a lot of businesses going out of business, including Toys R Us, that is naming Amazon as the reason why. The online superstore has even begun conversations about putting physical stores around the country to make it easier for people to get things.
How much power is too much power? Shervin Pishevar has brought up an interesting topic about the monopolies. If they are going to be allowed to wield the level of power that they are, when will we finally reach a point where they have too much power?
Super angel investor, Shervin Pishevar, is well-known as being the previous managing director and co-founder of Sherpa Capital. This is a venture capital fund that has invested in companies like Uber and Airbnb. He recently went on a 21 hour tweet storm that had some ominous predictions for the economic situation in the United States. Other predictions he has made regarding economics have proven to be true.
After a dramatic drop in the stock market in February 2018, Shervin Pishevar went on to post a variety of tweets that predicted bad things for the US economy. For example, he talked about quantitative easing. This is a process that central banks use to buy bonds. In the past, it is a tool that has been used to correct downturns in the market. However, Shervin Pishevar tells people to not be fooled by quantitative easing, basically saying that government bonds do not have limitless power when it comes to correcting the market.
In his 17th tweet, Shervin Pishevar said that inflation is dead. He said that the United States has been able to export its inflation for many decades and says that it never manifests itself in the way that people expect. He feels that under the current administration, uncertain trade deals are not going to help the situation.
He also addressed big funds. In his 14th tweet, he mentioned that when the market tanks, major CTA and managed future funds are taken out. He believes that there is a precedent to expect that big funds are going to bite the bullet.
These are just a few examples of the ominous predictions made by Shervin Pishevar in his 21 hour tweet storm rant. However, he did not only make bad predictions about the economy. He did say that there were some moonshots that would inspire good work. The exceptions to the rule included Virgin Hyperloop and SpaceX. Many feel that these predictions should be taken with a grain of salt, especially considering that Shervin Pishevar is one of the co-founders of Virgin Hyperloop. He mentioned that these moonshots are possible for smaller companies because of the decaying and decrypt infrastructure in the United States.
Shervin Pishevar recently used Twitter to express his views on the global economy. His discussion lasted for 21 hours, and it was composed of twits about Silicon Valley to immigration. Pishevar is no stranger to investing. He has invested in companies such as Uber, Slack, and Dollar Shave Club, so when he twits, people take notice.
One prediction was about the fall of the United States stock market. He gave a detailed explanation of what will cause a combined 6,000-point reduction. The drop for 2018 has already erased all of this year’s gains, and if his predictions continue, the decline will erase all of the profits of 2017. Factors that caused the decline are higher interest rates, improper taxing, and the increase between credit accounts and their deficits.
Pishevar twits covered the government bond market and the disasters ahead. Eroded are the powers of the central banks. The process of purchasing bonds to correct the market is ineffective.
The storm of twits continues with the international economy. Americans are pushing inflation out beyond our borders. Pishevar believes this has been creeping along for years.
Twit number four talks about managed funds. The short burst names funds that Shervin Pishevar thinks may fall in the upcoming economic crisis. The two areas of concern are Volatility Indices and Managed Future Funds.
Shervin Pishevar chimed in about the once shiny Silicon Valley. He seems to believe that they no longer are the most influential player, and innovation and talent are opting for other avenues. Silicon Valley is losing its exclusivity and cannot be relied upon as a mainstream for growth in the US anymore.
Pishevar is an immigrant, who tweets about walls blocking talent. The barriers created to protect citizens and keep out trouble are actually preventing growth, skill, and prosperity. With all that said, Shervin Pishevar has predicted future markets before, so will he do it again?