Shervin Pishevar has been at the forefront of Silicon Valley’s rise for the last 20 years. As the founder and CEO of Sherpa Capital, the veteran financier and entrepreneur has been behind the creation of many of the biggest names in tech. Companies that Shervin Pishevar has financed include Uber, Airbnb and Virgin Hyperloop. He has also been personally responsible for the founding of names like Social Gaming Network, WebOS and Ionside.
In his spare time, Shervin Pishevar frequently tweets about a wide range of topics. His Twitter feed has nearly 100,000 followers, making him one of the most influential thinkers in Silicon Valley. Recently, Shervin Pishevar unleashed a 21-hour tweet storm in which he expounded on everything from the U.S. economy to the state of Silicon Valley.
One of the hot-button issues on which Pishevar held forth is the overvaluation of many asset classes within U.S. markets. Pishevar says that affordability indexes point towards the majority of real estate markets in the United States being overheated. When residents in places like Los Angeles and San Francisco need to work 35 hours per week just to afford the average mortgage payment, the housing market is due for a major correction. Pishevar says that he has watched many bubbles in his lifetime from a front-row seat. All of the hallmarks of bubble economies are now currently being seen in many of the big-city real estate markets across the nation.
At the same time, Pishevar says that stocks are valued at historic highs by almost any measure that one chooses. The current Schiller P/E ration of 33 is among the highest ever recorded, with a historic average being around 20. Pishevar says that equities, like real estate, will almost certainly undergo a correction in the near-term future.
But even the bond markets are severely overblown. Pishevar says that gold and other precious metals provide one of the only safe havens for investor capital. He says that cash will soon become unsafe due to the inflationary pressures put on the dollar by the endless open market operations of the Federal Reserve bank.