During the first week of February 2017, Shervin Pishevar exploded the Twitter universe with a 5o tweet-storm of comments on the American economy that lasted 21 hours. People paid attention as Shervin Pishevar has proven to be a guru of sorts on the American economic stage. With his successes in business and the accuracy of his comments about what travails Facebook and other social media giants would soon experience coming to fruition, his opinions are hard to ignore.
Over the course of the tweet-storm, it became clear that Shervin Pishevar saw several signs on the economic horizon that led him to his conclusions. One of the central tweets (#27) dismissed the long-held belief that entrepreneurship is limited to America. “As I said before Silicon Valley is it longer a physical place but an idea that’s gone viral. Entrepreneurship is a movement. Bordless.” The typos in the tweet indicate how quickly thoughts were moving through his mind. From where did such thoughts sprout? From his experience in the business world.
Recognizing that ideas have no national borders is not a new thought. The actuation of the thought through a business perspective is something new. Looking back, the process that created the thought is evident. After WWII, businesses came to believe that what was good for the United States was good for business. That moto worked its way to the smallest communities. Businesses that expanded beyond the borders of the community to create copies of themselves in other communities looked to the original physical business as the model on which to build their business in a new community.
Those businesses that continued to succeed and expand sought to protect their first model as an example of loyalty to the community that spawned them. By the 1970s, that type of loyalty fell out of favor as distant stockholders demanded attention be shifted from the community and the workers that produced the product to the dividends that the product brought to them.
What Shervin Pishevar is suggesting is a revolution of sorts. No longer is entrepreneurship a product of a culture that rewards that culture. The idea is the kernel from which success sprouts; entrepreneurship is the expansion of the idea into action. Ignoring Shervin Pishevar’s tweets on the matter will not make the revolution go away. It is already here.
Current Economic Position
The economy of the United States is healthy. Unemployment rates are at the lowest point in many years. There are even some industries experiencing a labor shortage.
The vast majority of investing professionals believe that the stock market will continue increasing in value for the foreseeable future. However, Shervin Pishevar recently made a series of predictions related to economic growth. He firmly believes that the United States is going to experience an economic contraction.
Shervin Pishevar is a renowned investor who has years of experience running a hedge fund. He was an early investor in various technology companies. His most significant investment was in Uber. After making millions of dollars as a venture capitalist, he now spends his time helping investors manage their money.
Shervin Pishevar recently made the news when he spent an entire day tweeting numerous economic predictions. He thinks that the stock market is going to collapse and that the economy will take many years to recover. If he is correct, millions of people are going to be impacted in the coming months.
For the vast majority of investors, the stock market is the easiest way to save for retirement. Most people have a 401(k) option through their place of employment. Few investors understand how volatile the stock market can be.
In the last recession in 2008, the stock market lost nearly half of its value in just a few months. To prepare for a potential crash, Shervin Pishevar is warning clients to diversify into other asset classes.
Unlike many investment professionals, Shervin Pishevar recommends that people invest a substantial percentage of their portfolio into gold. He thinks the value of gold will increase tremendously in the coming years. Gold increases in value during times of economic calamity.
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.