After more than two months of not posting anything to Twitter, it was quite surprising to see 50 posts made in 24 hours by Shervin Pishevar. After such an influential person does not post a while and then goes on to create a Twitter storm, it merits some attention. Shervin Pishevar’s Twitter storm started after a steep dive in the market in early February 2018. He made some gloomy predictions about the future economy of the United States.
Shervin Pishevar is a co-founder of Sherpa Capital. He recently stepped down from his position as managing director. This is a venture capital fund that has invested in a variety of well-known companies, like Munchery and Uber.
One of the first things that he mentions in the tweet storm was that there was nowhere for safety to be found. He said that every asset class has proven to be overvalued and that everyone should scurry and scramble for safety. He predicts that even after the stomach-dropping drop at the beginning of February 2018 in the US stock market, he thinks that the market is going to continue to drop by 6,000 points in the next few months. It is true that the market definitely went down. He feels that some of the reasons for continued losses have to do with interest rates that continue to rise, tax giveaways, and credit account deficits.
About halfway through the tweet rant, Shervin Pishevar talked about bonds not being what they used to be, specifically quantitative easing. He says that government bonds by themselves are not without limit in their power to fix the market. Quantitative easing is a process that is used by central banks to buy bonds. At times, it can reset the market. However, Shervin Pishevar feels that this tool is something that has been used too much and will not continue to be effective. He warns people to not be fooled if US leaders turn to quantitative easing.
Shervin Pishevar has much experience in investments, venture capitalism, and as an entrepreneur. He has correctly anticipated economic crisis in the past, specifically with Facebook. He feels that things will get better when society is more open and transparent.