When Shervin Pishevar ended his nearly two-month Twitter silence on February 5, 2018, he made up for that absence through a thread of 50 tweets that he shared over the course of 21 hours. The tweet storm featured several highlights.
A 6,000-Point Drop
Pishevar began his spree as the Dow Jones Industrial Average experienced its rockiest period since the previous decade’s Great Recession. “Some thoughts on financial storms I am seeing brewing ahead. I expect a 6000-point drop in aggregate in the months ahead,” he commented. Then, Pishevar shared the reasons for his forecast.
A Dangerous Financial Tool
Shervin Pishevar directed contempt at multiple targets, but one seemed particularly dubious to him. He equated exchange-traded funds to the type of financial instrument that led the U.S. to the Great Recession during the previous decade. Pishevar wrote, “24 ETFs with a combined market cap of nearly $6 billion. The inverse ETFs are over 3 billion of that and are at essentially zero overnight.”
Further, he noted that ETFs are not built to ride out a volatile market. “These funds are intrinsically heavily leveraged and biased to low volatility,” he tweeted.
A Dwindling Competitive Advantage
Experienced in venture capitalism, Pishevar repeated a warning he first stated in a 2009 essay. “As I’ve said before “he tweeted,”Silicon Valley is no longer a physical place but an idea that’s gone viral. Entrepreneurship is a movement.”
Himself a naturalized U.S. citizen born in Iran, Shervin Pishevar bemoaned the current U.S. leadership’s stance on immigration when he wrote, “While we build walls, both physical and cultural, to keep out immigrant talent, that talent doesn’t need to come here anymore.”
A Challenge in the Global Arena
He then tweeted a link to a news story about a team of 1,500 workers who recenlty built a train station in China in one night. “Meanwhile, our infrastructure is in tatters, decrepit and decaying. Our government and companies are trapped in short-term thinking,” he lamented.
Through his tweet storm, Shervin Pishevar has warned the key players in the U.S. economy about important problems. Now, those players must listen or languish. View Additional Info Here.