‘Rich Dad Poor Dad’ author warns of massive stock crash

"Rich Dad Poor Dad"  authorRobert Kiyosaki

Robert Kiyosaki, author of “Rich Dad Poor Dad”.The Rich Dad / YouTube Channel

  • Robert Kiyosaki expects the stock market to crash and the US economy to experience a historic slowdown.

  • The author of “Rich Dad Poor Dad” has been warning about stocks and growth for more than two years.

  • Stock buyers are betting big on an AI boom, and the Fed is cutting rates and averting a recession.

Prepare for stocks to plunge and the US economy to crater, warned Robert Kiyosaki.

In a Sunday tweets, the ‘Rich Dad Poor Dad’ author said he doesn’t trade stocks and bonds because he prefers to have more control over the outcome of his investments. “Yet too many signs point to a severe stock market crash,” he noted.

“If your future depends on stocks and bonds, be careful, possibly seek professional advice,” he continued. “Fear that depression is coming.”

Kiyosaki’s gloomy outlook contrasts sharply with the rosy state of the markets and economy today. The benchmark S&P 500 is up 17% this year, while the tech-heavy Nasdaq Composite has climbed 35%, in part because investors are betting artificial intelligence will blow corporate earnings.

Meanwhile, annualized inflation has slowed from a 40-year high of 9.1% to just 3% over the past 12 months, not far off the 2% target of the Federal Reserve. The drop fueled hopes that the US central bank, which has raised interest rates from near zero to north of 5% in a bid to crush inflation, could soon reverse the trend. If the Fed cuts borrowing costs, it promises to reduce recession risks and give stocks and other assets a boost.

However, several commentators have compared the AI ​​boom to the dotcom bubble, warning that the technology may be overpriced, and speculation in Nvidia and other related stocks has sent their valuations to unsustainable heights. Other experts have warned that the Fed could keep raising rates if inflation proves stubborn or rises again, causing an economic slowdown.

Kiyosaki’s last tweet did not explain why he expects stocks to fall and a sharp and prolonged economic downturn to set in. , real estate and gold to collapse. He was right about the rate hikes, but asset prices and economic growth proved resilient to higher borrowing costs.

It should be noted that Kiyosaki is a vocal critic of the Biden administration, and has been warning of an epic stock market crash and promoting gold, silver and bitcoin as safe-haven assets for over two years. . The personal finance guru also freely admitted that he plans to capitalize if the markets crash and the economy crashes because “the best time to get rich is during a crash.”

Read the original article on Business Insider

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