Now that Trump is more than two years deep in his presidency, one thing is clear. The real estate tycoon has no clue how to maintain a robust economy. For the last two years, Mr. Trump has reversed the tide on Gross Domestic Product growth. And his recent border wall and immigration debacles continue to erode the U.S. economy as well as the global economy, according to government economists.
Few people saw what Trump had up his sketchy political sleeves in 2017. Investors thought Trump was a genius thanks to a strong stock market. And when he put Tariffs on steel and aluminum, they thought the U.S. would make a comeback in the production of those materials. But Silicon Valley hedge fund investor Shervin Pishevar read between the lines when Mr. Trump imposed tariffs on China and America’s allies.
In 2017, Shervin Pishevar wanted to let investors know Trump’s economic decisions could create an economic debacle that would rival the 2008 meltdown. But investors thought Pishevar’s 24-hour tweetstorm that outlined what was in store for them if Trump continued to ignore the basics of economic growth was some sort of joke.
Investors thought Shervin Pishevar was just licking his wounds after he resigned from Sherpa Capital. Some investors said Shervin Pishevar’s successes were behind him. They thought he wanted to regain credibility in the industry. Most investors ignored his tweetstorm until some of his predictions became facts in 2018.
Mr. Pishevar knew Trump was a rookie in the global economic game. Shervin knew tariffs don’t help economic growth. And he knew picking a trade deficit fight with China would come back and haunt investors. But Trump has the gift of deceit in his shady character. Investors believed what Trump said in spite of the signs that the economy was not responding to Trump’s decisions.
Now that the economy has Trump’s battle scars in its DNA, investors want to hear more from Shervin Pishevar. They know he saw something they didn’t see when he predicted a bear market and a global economic slowdown in 2017.