Shervin Pishevar knows about big-project economics. He helped found Virgin Hyperloop One, and he is a major investor in tech unicorns like Uber, Airbnb and Postmates. After the U.S. stock market hit a midwinter dicey patch, he initiated a tweet storm that spanned 21 hours and began on February 5, 2018. Aside from the one that announced his break for dinner, his 50 tweets told of continued uncertainty for the U.S. economy.
A Significant Loss in Value in 2018
While early February saw the Dow Jones Industrial Average lose all of the value it had gained in January, Shervin Pishevar predicted a total 6,000-point drop in the Dow during the first half of 2018. Such a drop equals more than 20 percent of the index’s January peak close at 26,252.12 points. Pishevar had only begun.
No Good Alternative to the Stock Market
The venture capitalist explained in a chunk of his tweet storm that financial instruments in which investors seek shelter during downturns are not currently reliable. “Every asset class is has proven to be overvalued,” he tweeted. Pishevar skewered bonds, volatility indexes, exchange-traded funds, inverse exchange-traded funds and managed-future funds. Then, he forecast that inflation would spread, other stock markets would crash and underemployment would harden to create systemic economic stasis. Still, anyone seeking a ray of hope will be pleased that Shervin Pishevar predicted a resulting rise in gold’s price. Find Related Information Here.
America Has Lost Its Advantage
Known on Twitter as @Shervin, Pishevar also wrote, “A tectonic shift has been brewing, as Silicon Valley has lost some of its competitive edge against competing zones of innovation.” He then commented that other populations recently adopted Americans’ entrepreneurial spirit, and they did so in economies with better infrastructure, which ultimately allowed their nations to surpass the United States in the global economic arena. As an example of other nations’ new nimbleness, Shervin Pishevar shared a news article about a train station built in only nine hours in China.
Players in America’s economy can change, or they can pretend that it is still the 20th century, do little to evolve and languish.