After being silent for a while on Twitter, Shervin Pishevar came back and caused a ripple on the platform on February 2018, posting 50 tweets over 21 hours. Shervin Pishevar was mainly concerned about the current state of the U.S. economy and its grim future. One of the predictions on his tweets was that the stock market should expect a significant drop. He went on to say, “Some thoughts on financial storms I see brewing ahead. I expect 6000 point drop in aggregate in months ahead. Here’s why.”
In the tweets that followed, Shervin Pishevar gives a couple of reasons as to why the market will experience this drop. Although his tweets were just predictions, there is a valid reason for any proactive investor to take his claims seriously. This is because Shervin Pishevar has managed to build a name for himself in the investments and financial world. He is a renowned venture capitalist and angel investor.
Pishevar claimed that as of February 2018, the market had already given up all the gains of 2018, and a similar outcome should be expected from all the gains of 2017. This is a crisis that the U.S. investors should expect to deal with over the coming months. In one of his tweets, Shervin Pishevar gave key reasons for the drop in points. He went on to say, “Rising interest rates, increasing credit account deficits, and tax giveaways without matching service cuts lead to a descent into panic.”
There is a looming crisis because there are barely any safety nets left for investors to get in. This is because every asset class is overhauled. This being the case, it would be wise for investors to brace themselves for the brewing financial storm.
The state of the U.S. economy has been unstable for a while now, and rising interest rates are just making things worse. High-interest rates weaken the dollar, and if this trend continues, the times ahead will be quite rough. Shervin argues that it is high time investors ventured into unexplored markets and other forms of currency such as cryptocurrencies and gold.