Shervin Pishevar is not bullish on the American economy. In a recent “tweet storm,” the venture capitalist predicted an economic downturn in the near future, including a stock market crash and a loss of the nation’s supremacy in the field of technology.
In one of his most dire predictions, Shervin Pishevar believes that the American stock market could drop 6,000 points in a matter of months. Such a drop would erase the recent gains of the stock exchange, which topped 26,000 in January of this year, and represent a decline of around 20 percent in total market value. He further tweeted that the bond market will not necessarily be the place to invest if stocks fall. In another tweet, he predicted a collapse in the Bitcoin phenomenon, with the cryptocurrencylater regaining its value.
With regard to the high-tech industry that has so long been dominated by the Silicon Valley, Shervin Pishevar expressed belief that this leadership will soon take a back seat to the rest of the world. He attributes this decline to the fact that technological developments can today be achieved almost anywhere.
In his a positive prediction, Shervin Pishevar believes that economic inflation is a thing of the past, with the increase of the cost in products having largely been transferred to other countries. He attributes the decline of American inflation to changes in trade arrangements. He also expressed hope that the world will eventually develop an economy that is “efficient” and operates in a “frictionless” manner.
Born in Iran, Shervin Pishevar came to the United States as a child and would later in his life play an important role in the creation of more than 60 companies. He was directly involved in the establishment of the venture capital firm Sherpa Capital. In four consecutive years, most recently in 2017, he was named to the Forbes Midas List of venture capitalists.
Real estate companies have one of the great performers of the current bull market. However, one investment expert believes that a particular billion dollar real estate company is vastly overvalued. That investment expert, Sahm Adrangi of Kerrisdale Capital Management, recently issued a negative report on the real estate firm The St. Joe Company.
According to a negative report issued by Kerrisdale Capital, St. Joe are only worth a fraction of the current market valuation. Sahm Adrangi lays out a couple of factors leading to the negative report on the real estate firm. According to the report, the largest shareholder of St. Joe, Fairholme Fund, will be forced to sell some of their shares due to SEC liquidity rules. Second, one of the real estate firm’s biggest projects, Bay-Walton Sector Plan, remains stalled. Finally, recurring revenue from St. Joe’s commercial development is not materially contributing to the company’s bottom line.
The report from Kerrisdale Capital goes on to state that St. Joe does not appear able to develop its current land holdings in a way to justify the company’s $1 billion market valuation. Current shareholders, according to Sahm Adrangi’s negative report, have been waiting years for St. Joe to develop their land projects.
Given that St Joe is facing roadblocks to further development and the eventual force selling from the Fairholme Fund, Kerrisdale Capital believesthat the real estate firm is worth 40% less than its current market valuation. In the report, Kerrisdale Capital revealed that they have a short position in St Joe and stand to gain financially if the company’s stock falls in value.
Sahm Adrangi is the founder and the Chief investment Officer of Kerrisdale Capital Management LLC. Since 2009, Kerrisdale Capital has grown from $1 million in assets under management (AUM) to over $150 million AUM. Prior to thefounding of his own investment firm, Mr. Adrangi has been employed at Longacre Management, Chanin Capital Partners and Deutsche Bank. Mr Adrangi holds a Bachelor of Arts in Economics from Yale University.