Nov 30, 2022
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2022 has been tough for most investors. Stocks have plunged, bonds have tumbled, and even broad benchmark ETFs are deep in the red.
But the worst could be yet to come according to Rich Dad Poor Dad author Robert Kiyosaki.
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“I believe economy is the biggest bubble in world history,” he says in a tweet. “God have mercy on us all.”
Since a lot of financial assets have gotten cheaper in this market downturn, it might seem tempting to buy the dip. But that’s not what Kiyosaki is doing.
“Many of you know I do not invest in equities, bonds, ETS or MFs. Please DO NOT listen to what I’m going to say next: ‘I would get out of paper assets’,” he says, adding that the world economy “is not a ‘market.’”
Instead, Kiyosaki likes three real assets for protection. Here’s a look at each one of them.
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Gold and silver
Precious metals — particularly gold and silver — have been a popular hedge against inflation and uncertainty. They can’t be printed out of thin air like fiat money and their value is largely unaffected by economic events around the world.
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Kiyosaki has long been a fan of gold — he first purchased the yellow metal in 1972.
“I’m not buying gold because I like gold, I’m buying gold because I don’t trust the Fed,” he said in an interview last year.
Kiyosaki likes silver, too. In fact, he recently tweeted “Silver best investment in Oct 2022” and “Everyone can afford $20 silver.”
To be sure, precious metals aren’t immune to the sell-off that’s been happening this year. The price of gold is actually down about 4% in 2022, while silver has fallen by nearly 9%.
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While there are many ways to gain exposure to gold and silver, Kiyosaki prefers to just buy the metal directly. Earlier this year, he tweeted that he only wants “real gold or silver coins” and not ETFs.
The author also called silver “a bargain” recently. So it might be time to visit your local bullion shop.
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Bitcoin
Bitcoin investors have learned the hard way just how volatile it can be.
Last November, bitcoin reached a high of $68,990. Today, it’s hovering around $16,400.
But Kiyosaki doesn’t seem bothered by the cryptocurrency’s downturn.
“BITCOIN? WORRIED? No,” he writes in a tweet earlier this month. “I am a Bitcoin investor as I am an investor in physical gold, silver, & real estate.”
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In fact, he sees the crypto mayhem as an opportunity.
“When BITCOIN hits new bottom, $10 to $12 k? I will get EXCITED, not worried.”
Kiyosaki believes in bitcoin for the same reason he loves precious metals: a distrust in our fiat money system and the government.
“I bet against the Fed, Treasury, Biden, & bet on [gold], [silver], & Bitcoin,” he explains.
These days, it’s very easy to tap into bitcoin: you can buy bitcoin directly. Just be aware that many exchanges charge up to 4% in commission fees just to buy and sell crypto. So look for investing apps that charge low or even zero commissions.
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Jing is an investment reporter for Moneywise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
