Shervin Pishevar has become known as one of the foremost experts in the world of tech finance. As someone who has made his living by being right about micro- and macroeconomic trends, Shervin Pishevar and his opinions carry a certain amount of market-tested cachet that makes him one of the most valuable people to listen to on matters of urgent economic importance to the country.
One of the ways that Shervin Pishevar is able to disseminate his insightful economic and political analyses is through social media. His Twitter account features more than 100,000 followers, making him one of the most influential figures in technology. And he has the attention of some of the most important thought leaders of our time. Therefore, it is worth paying attention to what Shervin Pishevar says, not just because he is usually spot on but also because his opinions are so likely to shape the thoughts of the technological elite.
Bond markets may not be as robust as some think
One of the topics that Shervin Pishevar has been addressing is the fact that the bond markets may not be as robust as some people have been trained to think. Pishevar says that due to the heavy-handed interventions of the Federal Reserve, the bond markets reflect largely artificial market forces. One problem with this is that those markets may make other markets highly sensitive to their movements. Pishevar says that a minor movement in the market for government securities, at this point, could send shockwaves through equities and even real estate.
Pishevar says that the equity markets, in particular, have become so reliant on ultra-cheap credit that they could easily collapse if that cheap credit is withdrawn. One of the main reasons for the sky-high stock valuations that we are currently seeing is the massive stock buybacks that large corporations have been engaging in through the use of cheap credit. Pishevar says that the sudden raising of interest rates will all but ensure that these companies will become liquidity starved, forcing them to issue new stock just as many other corporations are doing the same. This could be the spark that sets off a crash.