In February 2018, venture capitalist Shervin Pishevar went on a 21-hour tweet storm that shared his views on the US and global economies. Pishevar’s short-term prognoses for the stock market and Bitcoin were dire. Due to his unique position in the financial world, Shervin Pishevar is a worthy commentator on the state of the economy. His tweets touched on a wide variety of topics and provided forecasts for several industries.
Stock Market Warnings
Pishevar’s most stunning prediction was that the US stock market would drop 6,000 points in the coming months. He pointed to volatility in the bond market and a sense that the “genie [was out of the] bottle.” While Pishevar’s predicted drop was not as severe as he feared it would be, the Dow Jones Industrial Average did slide from 26,149.39 for the month of January 2018 to 24,271.41 for the month of June. Market forces and strong economic indicators prevented the kind of drop that Pishevar predicted.
Along with his other pessimistic predictions for the economy, Shervin Pishevar predicted a crash in Bitcoin values. “Bitcoin will continue to crash but stabilize at 2-5K range,” he stated. He went on to note that Bitcoin would experience a slower rise over the next two years.
Economic Fundamentals and Inflation
Pishevar traced Bitcoin and stock market performance back to the fundamentals of the economy. “[The] era of cheap money is dead,” he wrote. He went on to implicate inflation and underemployment in the “systemic economic stasis” he saw on the horizon.
He predicted a rise in gold as the more volatile sectors of the economy experienced turbulence.
Calling Out Silicon Valley
While Pishevar is a major investor in such important tech companies as SpaceX and Uber, he called Silicon Valley out on the carpet for failing to keep its “competitive edge” against other parts of the world.
Understanding Pishevar’s Tweet Storm
Pishevar’s motives for his tweet storm are unknown, but he provided a great deal of fascinating insight into innovation and the state of the global economy. Shervin Pishevar is a name to watch in financial circles.