Shervin Pishevar used Twitter on February 5, 2018, to comment on recent bumpiness in the American stock market. His session became tweet storm that ended 21 hours later. Through 50 tweets, the successful venture capitalist forecast several unsettling events.
Expect More Drops in the Dow Jones Index
When Pishevar began his Twitter marathon, Wall Street was experiencing its worst week in several years. He predicted a continued downturn. “I expect a 6,000-point drop in aggregate in the months ahead,” he tweeted. Pishevar then proceeded to reveal the logic behind his positions.
Inverse ETFs Are Suspect
Investors enjoy the portfolio diversity found in exchange-traded funds, but Shervin Pishevar foretold likely doom for those who try to beat the stock market via the specialty ETF class called inverse ETFs. “All volatility indexes are suspect for trading. Twenty-four ETFs with a combined market cap of near $6 billion. The inverse ETFs are over $3 billion of that and are at essentially zero overnight,” he stated.
The World Is Evolving Past the United States
Shervin Pishevar also mentioned an essay he wrote in the previous decade. In that essay, he warned that other countries had adopted the entrepreneurial spirit that helped America grow, and they were using it to gain advantages in the global arena. Now, insisted Pishevar in his tweet storm, those trends continue, and America has fallen farther behind its major competitors. He noted, “Speed of execution across many sectors from other regions is startling. Very little of frictions that are becoming systemic fractures here.” To further that point, he linked to a recent news story about a crew of 1,500 workers who built a Chinese train station in nine hours.
Currencies Will Be Stateless
The investor who goes by @Shervin on Twitter also wrote about a once-in-1,000-years shift that cryptocurrencies like Bitcoin will bring. Pishevar then stated, due to such stateless money, “Giants built on monopoly frameworks will fall…. That’s how evolution works.”
Entities and individuals in America’s economic ecosystem can listen to Shervin Pishevar and evolve based upon his commentary, or they can ignore him and likely falter. See This Article for more information.