Donald Trump wants to give back America’s membership in the global economy. Trump wants to teach China and other trading partners a lesson. The lesson is the United States doesn’t need international trade deals if other countries are making more money. According to Trump’s interpretation, a better trade deal is when America has the upper hand. His trade war with China could be the move that gives investment genius Shervin Pishevar’s tweets more credibility. Mr. Pishevar gave Trump, and the investment world, a dose of his investment predictions back in March. And it looks like his tweet about the economy taking a huge hit might be just around the corner.
Trump’s $200 billion tariff plan may hurt China now, but there are other countries standing in line to get a piece of China’s business. Once they do, U.S. farmers who had contracts with the Chinese will disappear, and may never come back. Plus, Trump’s tariffs are going to hurt American consumers. Prices will go up by at least ten percent, and they won’t come down. That means Shervin Pishevar’s tweet about the stock market dropping by more than 6,000 points could come true in the coming months. America’s Gross Domestic Product growth relies on consumer spending. And when prices go up, consumers stop spending.
Shervin Pishevar didn’t start a tweetstorm to scare investors, but that’s what happened in some investing circles. Those scared investors know Shervin Pishevar has an uncanny knack for predicting the future in the investment world. He was one of the first investors to dump millions into the Uber startup. Then he went for the gold again when he invested in Airbnb and Warby Parker. Shervin thinks every asset has too much fat and not enough meat in them right now. Some investors are looking for places to park their money, so it’s safe when the market and other assets lose their value.
But there are some investors who think Shervin Pishevar is just blowing off steam in his 21-hour tweetstorm. Those investors say Pishevar is over thinking the situation. Those investors also say Trump’s economic plan is working.