A serially successful tech investor, Shervin Pishevar understands 21st-century economics.
When the American stock market hit a skid in early February, Pishevar broke a two-month Twitter silence by posting one tweet that predicted a 6,000-point aggregate downturn in the Down Jones Industrial Average for 2018. He followed that tweet with 49 others that detailed uncertainty for the U.S. economy.
In chunks of his tweet storm, the successful venture capitalist highlighted multiple contributing factors. His culprits included rising interest rates and credit deficits, federal tax cuts that were not matched with adequate reductions in government services, faltering infrastructure and isolationist immigration policies. Shervin Pishevar also warned of a possible recession. He said that this era’s volatility indices, such as exchange-traded funds and managed-future funds, are built to wag the dog, and he added that similar financial instruments caused 2008’s Great Recession.
In other tweets, Pishevar bemoaned the U.S. economy’s complacency. Shervin Pishevar shared segments of an essay he wrote in 2009 that warned about competing populations copying Americans’ entrepreneurship and using nimbler infrastructure to surpass the U.S. Within the essay, Shervin Pishevar included, “The American Way has become the Global Way.”
Nearly ten years later, he called that statement truer. “Speed of execution across many sectors from other regions is startling. Very little of frictions that are becoming systemic fractures here,” he tweeted.
Further, Pishevar explained that stateless entrepreneurs were draining Silicon Valley’s competitive advantage. He exclaimed, “Silicon Valley is no longer a physical place but an idea that’s gone viral. Entrepreneurship is a movement. Borderless!”
Continuing, he decried the Trump Administration’s immigration policies. “While we build walls, both physical and cultural, to keep out immigrant talent, that talent doesn’t need to come here anymore,” Pishevar tweeted. Meanwhile, he noted, China recently built a large train station in nine hours. Find Related Information Here.
A Looming Shift
Noting that giants fall, Shervin Pishevar also forecast a once-in-a-millennium shift caused by digital, stateless cryptocurrencies, and he treated its likely results positively, saying, “When all the middlemen are irrelevant, we can have a global economy that is more perfectly efficient and frictionless.”