Some people wrongly assume that the economy is going to continue improving each year. Although the economy has some strong areas, there are numerous warning signs that trouble could be ahead. Shervin Pishevar is a prominent investor who spends a lot of time studying economic cycles. He recently tweeted for 21 hours about the economy. Most of his predictions for the future were negative. He believes that investors need to be prepared for a major crash in the stock market.
When the economy is growing, the Federal Reserve increases interest rates. For many years, the Federal Reserve kept interest rates low in order to stimulate the economy. There are many people who believe that interest rates are going to increase rapidly in the years ahead. Rates are already much higher than just a year ago.
As interest rates increase, inflation tends to increase as well. There are many people who struggle to afford basic necessities when prices increase. This is something that few people are prepared for. Click Here for more information.
Stock Market Collapse
The stock market has been on an amazing run for the past decade. However, Shervin Pishevar believes that this is about to end. He predicts that 2018 is going to be a terrible year for the stock market. Investors who are not prepared for additional volatility are going to have various issues.
One way for investors to protect themselves is by investing in gold. Shervin Pishevar has a substantial financial position in gold. He believes that the value of gold will increase rapidly once the stock market starts to decline. Over the years, this has been a solid investment during a recession.
Bitcoin has increased in price considerably over the past year. Shervin Pishevar holds a large financial position in various cryptocurrencies. He believes that 2018 will be a rough year for the entire asset class. However, he views any drop in value as a buying opportunity. He still believes that cryptocurrency has the potential to impact various industries in the economy. Although the economy may falter, there are still opportunities for people to make money.