Highlights from Shervin Pishevar’s Early-February Tweet Storm
Venture capitalist Shervin Pishevar helped build Uber, Postmates, Virgin Hyperloop One and other tech-heavy commercial entities. During a storm of 50 tweets on February 5 and 6, 2018, he shared his perspective regarding woes in the U.S. stock market and broader economy.
Pishevar commenced his Twitter spree while the Dow Jones Industrial Average experienced its worst week since the previous decade’s Great Recession. He began, “Some thoughts on financial storms I see brewing ahead. I expect a 6000-point drop in aggregate in the months ahead.” In the tweets that followed, he backed up his case.
Suspect Financial Products
Shervin Pishevar heavily criticized exchange-traded funds. Commonly known as an ETF, this type of fund theoretically lets people achieve portfolio diversity by investing in one stock symbol. A fund manager picks the stocks in which an ETF puts its investors’ money.
Pishevar considers ETFs potential catalysts to a new recession. “These funds are intrinsically heavily leveraged and biased to low volatility and have gotten very popular in the last couple of years,” he tweeted. He decried the purpose of ETFs and called them loopholes to institutions’ risk-taking behavior.
Competitive Advantage Declines
Later, Shervin Pishevar warned that the United States can no longer rely on Silicon Valley drawing the tech world’s top talents to its city limits. “Silicon Valley is no longer a physical place but an idea that’s gone viral,” he submitted.
A naturalized citizen who immigrated from Iran, Pishevar also bemoaned U.S. immigration policy. He wrote, “While we build walls, both physical and cultural, to keep out immigrant talent, that talent doesn’t need to come here anymore.” Visit This Page for more information.
Competing Nations Now Have the Edge
Then, Shervin Pishevar gave an example of a global competitor excelling at economic growth. He shared a news story from China, where a crew of 1,500 workers recently built a train station in one night. “Meanwhile,” Pishevar wrote, “our infrastructure is in tatters, decrepit and decaying. Our government and companies are trapped in short-term thinking.”
Countries that heed Shervin Pishevar’s recent tweets can win in the 21st century. Those that ignore the tweets will likely struggle.