Super angel investor and venture capitalist, Shervin Pishevar, took to Twitter to let his concerns about the US economy be known to all. This was a surprise considering that he hadn’t used his Twitter account in over two months. The last time he tweeted he mentioned that he would be resigning from Investment company, a company he helped co-found.
It seems that when the stock market makes a loud enough crash, even the sleepiest bear can be awakened from hibernation. The US stock market experienced a dramatic drop, one of the most steepest dives in recent memory, in early February 2018. Shervin Pishevar sent out 50 points regarding why he felt the US was in such a bad economic state and why it would continue to get worse. In fact, he feels that the market will drop an aggregate 6,000 points.
So why does he feel that the situation is so desperate and will continue to get worse? He feels that the main culprits involve rising interest rates and increasing credit account deficits. He also mentioned tax giveaways. He said that every asset class has proven to be overvalued and that safety would not be found anywhere.
His 17th tweet addressed inflation. He said that it is dead and never manifests itself the way that many expect. He said the US has been able to export inflation for decades. Under the current administration, Shervin Pishevar doesn’t seem to have any faith that uncertain global trade deals are going to help.
Shervin Pishevar seems to be especially concerned about CTA/managed future funds. Whenever the market tanks, these big funds are at risk and may crumble.
Does Shervin Pishevar have any hope for the future? He did mention that there were a couple of companies that inspired good work. He specifically mentioned SpaceX and Virgin Hyperloop One. Some may feel that this flattery should be taken with a grain of salt considering that he is actually a co-founder of Virgin Hyperloop and has worked in the past with the founder of SpaceX.
In times past and in this tweet storm, Shervin Pishevar has mentioned that an open society without bottlenecks on innovation and volatility is worth fighting for.