The unconventional venture capitalist took to Twitter to share his thoughts regarding the US economy. He shared his thoughts elaborately in a tweet storm for 21 hours, giving out 50 points explaining why the U.S. stock market will drop by averagely 6000 points in the few months to come.
In one of the tweets, he touches on government bonds and explains how their power are not limitless in recorrecting the market. Shervin Pishevar goes on to say that quantitative easing, a process that involves central banks purchasing bonds, is a tool that can correct the market. However, he argues that this tool has been used so much to continue being useful.
Shervin Pishevar argues in another tweet that inflation has been exported. He critiques the notion that the American economy is trending upward globally saying that he doesn’t find inflation a remedy. Shervin Pishevar goes on to express his lack of faith in global trade deals under the present administration. Shervin also touches on big funds, particularly Volatility Indices and Managed Future Funds. He predicts failure and believes there is a reason to expect a significant risk.
Some of his other predictions include instability of bonds will affect other markets and Bitcoin will drop significantly but slowly rise again. When it comes to infrastructure, the country will lose to a country like China, with the few numbers of start-up companies, the large companies will continue to hold much power, among other arguments concerning the country’s economy.
Shervin’s sudden twitter outburst is difficult to parse. It is not clear why he chose to air his views on economic issues of the country, or whether the return has something to do with the lawsuit he dropped the previous day accusing Definers Public Affairs of conducting a smear campaign against him. However, his concerns appear to be beyond the 6000 points decline he is foreseeing. He briefly mentions the challenges within nationalism, politics, and cultural trends. For all we know, there might be a bullseye within his 50 tweets.