Entrepreneurs and investors become successful for a number of reasons. Hard work and tenacity both play roles in a driven person’s quest for success. Another trait assists with being successful. Successful people have a tendency to be more right than wrong. A person who puts money into the stock market or venture capital endeavor needs to be more right than wrong. Otherwise, the endeavors won’t yield any return on investment. Shervin Pishevar gained a strong reputation as someone who knows how to make the right moves. His career as a venture capitalist indicates he possesses strong insights into where a business may be headed profit-wise.
So, some panic may be circulating due to the tweet storm Shervin Pishevar blasted out over social media in February. Pishevar covered a range of different topics. Among those topics was a dire warning about the stock market. Pishevar held nothing back. He feels the market may collapse. By collapse, Pishevar suggests a decline of many thousands of points. If this prediction comes to pass, billions of dollars in wealth would be wiped away. Of course, markets experience both ups and downs. A crash might be followed by a boom period. The period in between, however, could be a long time.
An eventual recovery doesn’t eliminate the pain a market decline brings. Huge crashes, even ones that experience eventual recoveries, do create massive problems in the economy. To address the immediate loss of capital, businesses cease hiring and might initiate layoffs. Personal investors choose to stop spending their money as conservation becomes necessary. Such reasons are why Shervin Pishevar choose to deliver a warning on Twitter. He probably wants the public to be prepared for a worst-case scenario.
Pishevar’s commentary carries weight as he is known for putting money into ventures such as Uber and Silicon Valley startups. His assessment suggests a 6,000-point drop. Pishevar bases his opinion on the losses 2018 experienced in relation to the gains of 2017.
Will Shervin Pishevar change his opinion about the market? It is possible. Keep tabs on his Twitter feed to see if his stated opinion changes.