When predicting the future, few if any people truly know what will happen in the months and years to come. However, that rarely if ever stops people from offering their thoughts and opinions pertaining to various events. This has been the case with respected venture capitalist Shervin Pishevar, whose recent 21-hour tweet storm on various economic issues gave his followers much food for thought as to the future of the U.S. stock market, Silicon Valley, virtual currencies, and many other pertinent topics of interest.
As he started dishing out his Twitter predictions, Shervin Pishevar first took aim at the U.S. stock market and what he predicts will be difficult times ahead for investors. According to his predictions, the stock market will fall in value by as much as 6,000 points in the coming months, leaving investors in a tough spot. Believing the current volatility found in the bond market will be the reason for the decline, Shervin Pishevar does predict that precious metals such as gold may be the way for investors to keep from suffering tremendous losses.
Once people digested his predictions for the stock market, Shervin Pishevar next focused on the fortunes of Silicon Valley. While a perennial world leader in high-tech innovation, he predicts these companies will fall behind foreign competition from China and other nations, due in large part to an inability to hire the best and brightest minds in today’s world of high-tech IT. To regain their status as the world’s IT leaders, Shervin Pishevar predicts these companies will need to develop much more aggressive global marketing plans to overtake the competition.
As a final surprising tweet, Shervin Pishevar let those who are invested in virtual currencies such as Bitcoin know trouble may be ahead for them as well. Predicting a drop in value of perhaps $5,000 over the coming year, he does however have much more optimism for this area than the stock market. Predicting investors who stay the course will recoup their losses and actually make a profit along the way, he no doubt has many investors on the edge of their seats.
When Shervin Pishevar went on a no-holds-barred tweetstorm in February 2018, most investors thought Pishevar was way off base. Back in February, President Trump said the economy will stay strong while he slept in the White House. But Shervin Pishevar read the investment tea leaves, and what he saw shook him awake. Mr. Pishevar started his now-famous tweetstorm by telling the world the stock market was not the place investors should be during Trump’s presidency.
Shervin Pishevar predicted a 6,000-point stock market drop a year ago. But most investors didn’t listen to the investor who made Uber and Airbnb household names. Shervin put up $21 million to get Uber off the ground when he worked for Menlo Ventures. He followed that win with investments in Postmates, Warby Parker, and several other startups. Shervin Pishevar became one of Silicon Valley’s top investor’s thanks to his ability to spot winners before other investors.
But even though Pishevar is a member of the Silicon Valley riding high club, he didn’t mince any tweeting words when he said the Valley may not be the startup capital of the world much longer. The Chinese want to dethrone Silicon Valley, and Shervin Pishevar thinks that will happen within the next two years.
Mr. Pishevar also threw bond market investors a tweeting curb ball when he said the bond market won’t help investors ride out the stock market storm. The yield for two-year notes almost equal the yield of 10-year notes, and that’s not good news for investors who need to park their money in a safe place.
During Shervin Pishevar’s 50-plus tweetstorm, most investors thought the investing maven wanted to relieve some of the anxiety he felt when he resigned from Sherpa Capital, his hedge fund firm. But Pishevar wasn’t licking his business wounds when he sent those tweets. He wanted to warn investors that a financial storm was in the works, and they needed to take cover. According to Pishevar, no asset class is safe right now. Shervin thinks the 2018 market drop was the start of a major asset adjustment, and that adjustment could last for several years.