Shervin Pishevar is a transcending person, who makes waves when he speaks on important topics. As an early investor in companies like Uber, Airbnb, and other multi-billion-dollar tech companies and founder of Sherpa Capital, some would say he knows what he is talking about. Possibly, some would say, he can spot trends and opportunities before the full effects are realized by the masses.
This week, Shervin sent out over 50 tweets during a 24-hour period, giving his opinions and thoughts on a multitude of topics, from the economy to the rise and eventual fall of modern tech conglomerates like Google and Amazon. In what many are calling a tweet storm, Shervin made waves with some of the more controversial tweets put out.
Ironically, just a day after he unloaded that long string of tweets, the market lost its bearings. As if on cue, the Dow began to crash, the S&P scrambled to find its footing, and the whispers of “correction” grew to panicked shouts.
Bonds weren’t safe. Industrials weren’t safe. The markets were nervous, and they were showing it.
The massive sell-off, which saw the Dow lose 500 points in a mere half hour, deserved its own nickname connected to what some say was the catalyst. In one tweet, recalling the actions of America’s Cheerleader-in-Chief and his constant bragging over the steep ascent of stocks, Shervin Pishevar was more than happy to coin that phrase. He called it #TrumpDump.
— J.R. Benight (@benight_j) February 5, 2018
The Coming Market Crash
The first of the string of tweets came on February 5 just after 9 pm, touching on his thoughts on the state of the current markets in the US. Shervin predicted a 6000-point drop in the US stock market in the “months ahead”. This first tweet caught the attention of many, particularly because he had been absent from twitter recently, and a 6000-point drop would be a significant regression of the current markets.
Various tweets were sent out next, most of which further explaining his reasoning for his prediction on the market and various thoughts on a range of financial topics from bonds, interest rates, and volatility in general.
After his first tweet, his next trending topic was inflation, and how the US has historically exported inflation, pushing the ramifications onto other countries. Followed up with a tweet considering what the future holds in terms of exporting that inflation. Wondering, “who is left to take it especially with uncertainty coming from Washington over every major global trade deal”.
The Rise and Fall and Rise Again of Bitcoin
But the tweets on inflation were only his 17th and 18th of the 50 tweets sent out, all conveniently numbered by Shervin himself. By his 24th tweet, Shervin had moved on to the coming crash in Bitcoin prices, predicting a price drop to “2-5k” before beginning “a more stable rise over the next 24 mo’s”. This is particularly interesting for an asset that has risen to just under 20k in the last few months, but more recently pulled back to its current price around 8k.
The American Way Now the Global Way
Next, he touched on entrepreneurship and innovation, how the US has traditionally been the land of such entrepreneurship and innovation, but recently, this has spread worldwide. No longer must you be located in the US to establish and grow a world-changing company. Tweet 26 further explained his thoughts, saying “A tectonic shift has been brewing as Silicon Valley has lost some of its competitive edge against competing zones of innovation”.
27 “As I’ve said before Silicon Valley is it longer a physical place but an idea that’s gone viral. Entrepreneurship is a movement. Borderless”.
Tweet 32 went on further explaining how innovation is changing around the world, “Speed of execution across many sectors from other regions is startling. Very little of frictions that are becoming systemic fractures here”. He went on to give examples of how the world is rapidly evolving and innovating, referencing an article describing how China built an entire train station in just 9 hours with the help of over 1500 construction workers.
China is Winning and the US Will Lose
He went more in-depth on his previous thoughts on innovation and particularly, innovation in China. Again, referencing the building of a train station in 9 hours and how their advancements in infrastructure outpace the US.
“Meanwhile, our infrastructure is in tatters, decrypt and decaying. Our government are trapped in short term thinking”.
Taking on the Biggest and Strongest Companies
Suggesting the 5 US monopolies, in his opinion, are limiting overall growth and innovation by stifling innovation made possible by smaller startups across every industry. “As Silicon Valley monopoly on early stage has shifted abroad its empowered 5 US monopolies: Alphabet (Google), Amazon, Apple, Facebook, Microsoft” and tweet 43 “Just like Ma Bell, these 5 giants have too much power, stifling startups. Uber might be the last giant to eke out before it was too late”.
Clearly, Shervin thinks the stranglehold these 5 companies hold on their respective industries, are ultimately placing a stranglehold on innovation, if they are not the one profiting from the innovation, nobody should. And they will continue to acquire small startups to keep that stranglehold.
He has Been Right in the Past
Some of the thoughts put forth in Shervin Pishevar’s 50 tweet, “tweet storm”, are relatively controversial, but not completely off the wall. Clearly, based on his success in identifying early-stage startups and making investments through his fund Sherpa Capital, he has a track record of identifying trends that ultimately end up coming to fruition. This is not to say everything put forth in the 24-hour Twitter storm, touching on virtually every trending and substantial topic around the globe will come true. But it would be a disservice to not contemplate the 50 tweets and make your own assumptions based on what he has put forth and your own research.