Robert Kiyosaki, finance expert and author of “Rich Dad Poor Dad,” warned that the biggest market crash is coming. In a Facebook post, Kiyosaki wrote that the global stock market is “collapsing.” Here’s why he saying that.
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Major Market Swings
The market is in a continual state of flux and the figures Kiyosaki wrote in his post are no longer reflective of the situation. With that in mind, the warning remains: markets are highly sensitive to political tensions and dislike uncertainty, but can create pitfalls as well as potential gains.
“Geopolitical conflict tends to create short-term dislocation,” explained James Comblo, partner at Prosperity Capital Advisors. “Markets often price worst-case scenarios very quickly — often overshooting to the downside in ways that don’t reflect the underlying economics.”
As tensions ease, economies bounce back.
“Volatility can create both risk and opportunity for those who are prepared,” Comblo said.
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Why Kiyosaki Is Betting on Bitcoin
For Kiyosaki, being prepared is buying bitcoin.
He said “paper assests” rely on another party’s commitment, while tangible assets depend only on the natural world.
From stocks to bonds and 401(k) plans, Kiyosaki said they are risky because the investments are “promises” from the government, Wall Street or a corporation and “promises are broken during war.”
Bitcoin is different because there’s nobody to sound the alarm.
He suggested that bitcoin isn’t run by a “CEO” that can make “panic.” Referencing the effects of the Iran conflict.
Gold and Silver: Real Assets for Turbulent Times
Other assets Kiyosaki recommended buying are gold and silver. According to the entrepreneur, crashes are not “celebrated” by the wealthy — they “prepare for them.”
He added that when the downturn hits, they’re the ones scooping up assets that the frightened middle class is rushing to unload.
To Kiyosaki, that’s gold and silver because they are assets the government “cannot destroy,” with broken guarantees.
Whether Kiyosaki’s prediction comes true remains to be seen, but one thing is clear: markets move in cycles. Understanding your investing risk tolerance is key and making informed choices can help you navigate volatile global markets.
“As in life, if you make a decision on your investments based entirely on emotion, it probably isn’t the right one for you”, said Eric Mangold, Certified Wealth Strategist (CWS) and founder of Argosy Wealth Management.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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This article originally appeared on GOBankingRates.com: Robert Kiyosaki Warns of the ‘Biggest Crash Yet’
