There are plenty of voices out there that want to tell you what you ought to think about this topic or that. They will preach to you from their own economic philosophies about how the world ought to work according to their framework. That is all well and good, but there are definitely some downsides to listening to what just anyone has to say on the topic. Instead, listen to someone like Shervin Pishevar.
In terms of entertainment value it is hard to match Shervin Pishevar. He recently logged onto Twitter to announce various stances that he has taken on the economic issues of the day. It wasn’t just a brief comment here or there either. Rather, Shervin Pishevar released a fifty tweet long tirade about all kinds of different issues impacting the global economy as he sees it. He felt that this was one of the best ways to reach out to a lot of people all at the same time.
“Cryptocurrency platforms have exorbitant fees, and they’re hard to use. I think it’s fair to say that our goal is to build the best product on the market, where users can have all of their investments in one place.” @vladtenev via @zoeSaintBernard https://t.co/h4X0dtybxO
— Robinhood (@RobinhoodApp) May 11, 2018
There were no prisoners taken when Shervin Pishevar got on a roll with what he was talking about. He did not beat around the bush when it came to calling out the Trump Administration for their policies that he believes are causing economic turmoil throughout the country. He also was not shy about saying that investors in Bitcoin today are going to get burned by the currency. He simply does not see the value in holding this particular currency at this moment in time. He thinks that it is actually pretty dangerous to do so.
Shervin Pishevar would like to see those who are holding US-based equities dump them to avoid what he sees as at least a twenty percent pullback in the value of stocks in the near future. He thinks that getting people to get out of their equity positions is the best way to avoid some of the pain that is coming.
You could classify Pishevar as a bear in a bull market right now. He would gladly wear that label so long as it turns out that he is right on the facts at the end of the day.
Shervin Pishevar sent out a Twitter rant in December that spelled out his predictions for the financial markets of the United States and the global economy. Pishevar is a knowledgeable investor who buys companies like Uber, Slack, and Postmates.
One area that Pishevar sees drying up is the Silicon Valley. The Valley used to absorb new fresh thinkers and gobble up innovation, but those days will soon be just a memory if Pishevar’s predictions come to fruition.
There are five not big but massive companies that will begin to fail: Google, Microsoft, Apple, Amazon, and Alphabet. His exact tweet, “Unicorns are becoming increasingly hungry.” Referring to the fact that these companies have the ability to buy new emerging businesses before they ever take off. This buying style will ultimately break the system.
Not only does Shervin Pishevar tweets predict large corporations failing but also significant managed funds. Two possible candidates might be Managed Future Funds and Volatility Indices. An event like this is unprecedented and unimaginable.
The US stock market will fall. It will plummet to depths that erase all of the profits from 2017. The declines have already wiped out the 2018 gains. Government bonds are not the protected asset they use to be. Bond power is not without boundaries. Gone are the days when the central bank could adjust the financial world by purchasing bonds. Pishevar goes on to state that this so-called “tool” will become useless.
Another tweet stated, “Inflation has been exported.” The United States’ financial markets are intertwined with the international economy. There is no getting around that fact. He believes that America has passed inflation outside of her borders, and with the current political atmosphere, world trade is unstable, at best.
In a separate Twitter sound off, Shervin Pishevar described how building barriers to keep out people might be pointless because talented and skilled people do not need to come to the United States anymore. Other economies, such as China, prove they are competitors when they build a transportation station in nine hours. Shervin Pishevar left us with many things to think about.