Shervin Pishevar racks up yet another correct market prediction

Last February, Shervin Pishevar, one of the most respected figures in tech venture capital, made a series of predictions about the future of the U.S. stock market. Tweeting to his nearly 100,000 followers, Shervin Pishevar said that the markets would likely experience one of their worst years in a decade. He also predicted that volatility would return to the markets, wreaking havoc with some of the new index funds, particularly those that invested in volatility.

Shervin Pishevar said 200-day moving averages will be reset downwards

One of the key metrics that investors use to judge the long-term health of equity and other markets is the 200-day moving average. For the last 10 years, the markets have more or less tracked inside their 200-day moving averages, yielding remarkably stable returns to investors.

But Shervin Pishevar was one of the first to go against the crowd and predict that, for the first time in nearly a decade, the Dow Jones would be trading below its 200-day moving average. This prediction has turned out to be prophetic. The Dow Jones has, indeed, been trading significantly below its 200-day moving average since the beginning of October. Increasingly, investors are worried that the departures from recent historic norms may signal a fundamental shift in the mood of investors and the future of what has amounted to one of the longest-running bull markets in the history of the country.

But many investors still don’t want to listen to the rest of Shervin Pishevar’s opinions. The majority of what the inveterate financier has said is not particularly optimistic. And he has specifically predicted that the Dow Jones may give up all of the gains that it made in 2018 and most of what it gained throughout 2017.

By this point, however, Pishevar’s incredible track record of getting very specific predictions about the future course of markets right means that investors, no matter how bullish, should be listening to his financial opinions. Listening a little more to reasoned voices like Shervin Pishevar versus self-interested figures like Janet Yellen may be the best thing that America could do to right its financial ship.

Shervin Pishevar’s Tweets Have People Listening

There are always tweets going around with nuggets of advice. Shervin Pishevar, a tech investor, decided to make his voice heard on Twitter in February. Months later, people are still finding his advice and overall outlook intriguing.


The Tweet Storm

What is now being referred to as a tweet storm included 50 tweets sent in the span of a day by Shervin Pishevar. Of course, he decided to break them out, sending only a few an hour. He even paused his thoughts for dinner. To make it easier for his tens of thousands of followers, he did number the tweets.


In the tweets, he covered his thoughts on the economy, monopolies that have too much power, the lag that the United States has in terms of the speed of production, and more.


Why are people listening?

There are a number of reasons why people have chosen to listen to Shervin Pishevar’s tweets. The first is that his tweet storm was picked up by a number of business blogs. Plenty of bloggers have decided to add to his tweet storm and put their own thoughts on the topics that were covered.


The second is that Shervin Pishevar is a smart businessman. He was an early investor in a number of startups, including Airbnb and Uber. He has a sense for knowing when things will happen, which is why he has been so successful. With over 50,000 followers, it only makes sense that people are listening to what he has to say.


Finally, much of what he has said has truth behind it. He predicted that the market would drop in aggregate by 6,000 points in the coming months. Within a day, the market started to teeter. He has also called out the monopolies with too much power, including Amazon and Facebook, both of which have been in the news recently because of the power they’re wielding.


Reading up on the tweets that Shervin sent can shed some light on the state of affairs in the United States.