In a recent tweet, Robert Kiyosaki said, “Bull markets make stupid investors look smart. Bear markets turn stupid investors into losers and smart investors into winners. Markets collapse. It’s time for smart investors to become very rich winners.“Here’s 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 concerned about inflation, the Fed raising interest rates, and the possibility that these hikes will plunge the U.S. into a recession.
Robert Kiyosaki is not alone in his fear of a recession. Charles Scharf, CEO of Wells Fargo, and Elon Musk, CEO of Tesla, believe the U.S. economy is headed for a slowdown. JP Morgan CEO Jamie Dimon believes the risk of the U.S. economy entering a recession is increasing.
“Inflation is going up and the average American doesn’t have $1,000… So when inflation goes up, we’re going to eliminate 50% of the American population“, Kiyosaki warns. The only thing Kiyosaki claims America is producing is “bubbles“and the real estate market, the stock market, and the bond market are bubbles. As a result, retirees who rely on their 401(k) plans may be exposed to too much risk and, according to Kiyosaki, are “toast“.
How smart investors can become very rich winners
Kiyosaki recommends gold, silver and bitcoin as the means to hedge against inflation. Regarding crypto-currencies, Kiyosaki believes that the high national debt will cause the US dollar to implode. Owning Bitcoin, Ethereum and Solana could help protect you. Bitcoin has also been battered by the Fed’s recent rate hikes.
According to Kiyosaki, this is great news. “As stated in previous tweets, I am waiting for bitcoin to crash to 15k. I will then wait for the bottom test which could be $12k. Once I know the bottom is reached, I’ll pull the truck up. Crashes are the best time to get rich“.
For Robert Kiyosaki, sharp declines create opportunities to get rich. As he puts it, “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. Kiyosaki says that during the 2008 financial crisis, he began “buying real estate at bargain prices .” and that he now owns “over 12,000 rental units.” This was a smart move considering the increase in real estate 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. His father was a teacher at a US military base in Japan and his mother worked as a real estate agent. In 1968, he graduated from the US Air Force Academy and then served in the military until 1974 when he resigned to devote himself entirely to his business.
In 1986, Robert Kiyosaki founded the Rich Dad Company to teach people how to manage their money effectively. His principles are based on four pillars: learning how to earn money, learning how to save money, learning how to invest money, and learning how to use debt properly so that it works for you and not against you. These ideas have been 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!