In a recent tweet, Robert Kiyosaki said: “Bull markets make dumb investors look smart. Bear markets turn stupid investors into losers and smart investors into winners. Markets are collapsing. It’s time for smart investors to become very wealthy winners.“Here is what he means by that.
The S&P 500 is in a bear market
The stock market is officially in a bear market. A bear market is when the market has fallen 20% or more from a recent high. Investors are worried about inflation, the Fed raising interest rates and the possibility that these hikes will push the United States into a recession.
Robert Kiyosaki is not the only one to fear a recession. Wells Fargo CEO Charles Scharf and Tesla CEO Elon Musk think the US economy is heading for a slowdown. JP Morgan CEO Jamie Dimon believes the risk of the US economy entering a recession is increasing.
“Inflation is going up and the average American doesn’t have $1000… So when inflation goes up we’re going to eliminate 50% of the American population“, warns Kiyosaki. The only thing Kiyosaki claims America produces are “bubbles” and the real estate market, the stock market and the bond market are bubbles. As a result, retirees who rely on their retirement savings (401(k)) plans may be exposed to too much risk and, according to Kiyosaki, are “grilled“.
How Smart Investors Can Become Super Rich Winners
Kiyosaki recommends gold, silver, and bitcoin as the means to hedge against inflation. When it comes to cryptocurrencies, Kiyosaki thinks high national debt will cause the US dollar to implode. Owning Bitcoin, Ethereum, and Solana could help protect you. Bitcoin has also taken a beating from recent Fed rate hikes.
According to Kiyosaki, this is great news. “As stated in previous tweets, I am waiting for bitcoin to crash to 15,000. I will then wait for the bottom test which could be $12k. Once I know the bottom is reached, I reassemble the truck. Crashes are the best times to get rich“.
For Robert Kiyosaki, steep declines create opportunities to get rich. As he says, “The great thing about bubbles is that when they burst, everything goes on sale.” Smart investors don’t panic or get emotional when prices go down. They are patient and wait to buy the bottom of the wave. Kiyosaki says that during the 2008 financial crisis, he started “buying real estate at bargain prices” and that it now has “more than 12,000 rental units”. It was a smart decision considering the increase in property prices since 2008.
Who is Robert Kiyosaki?
Robert Kiyosaki, born April 8, 1947 in Hilo Hawaii is an American writer, investor and speaker on the topics of personal finance and entrepreneurship. He is known for his book Rich Dad Poor Dad (1997).
Kiyosaki grew up in a modest family. Her father was a teacher at a US military base in Japan and her mother worked as a real estate agent. In 1968, he graduated from the US Air Force Academy and then served in the army until 1974 when he resigned to devote himself entirely to his business.
In 1986, Robert Kiyosaki founded the Rich Dad Company whose goal is to teach people how to manage their money effectively. Its principles are based on four pillars: learning how to make money, learning how to save money, learning how to invest money, and learning how to use debt properly so that it works for you, not against you. These ideas were popularized by his international bestsellers such as ‘Rich Dad Poor Dad’ or ‘Cashflow quadrant’. To date over 26 million copies have been sold in 40 different languages!
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