Mar 15, 2024
Momentum in the U.S. stock market appears unyielding. The S&P 500 soared by 24% in 2023 and is up another 8% in 2024. However, “Rich Dad Poor Dad” author Robert Kiyosaki foresees a significant downturn on the horizon.
“Stock market set to crash,” he cautioned in a recent tweet.
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The famed author also highlighted the potentially profound impact of such a crash on his own generation — the baby boomers.
“BABY BOOMERS BUST. Tragically biggest bubble in history will wipe out baby boomers because Boomers are the first generation with flimsy 401ks,” he explained.
Given the extensive exposure many people have to the stock market through their retirement savings, a stock market crash could indeed be devastating. During the market sell-off in 2022, CBS News reported that 401(k) and IRA plan participants experienced an estimated loss of around $3 trillion.
However, Kiyosaki doesn’t just forecast doom; he also offered suggestions on steps to take before the anticipated financial reckoning.
“Time to get real is now. Buy real assets: gold, silver, Bitcoin before the biggest bubble in history goes bust,” he said.
Here’s a closer look at these assets.
Gold and silver
A long-time advocate for gold, Kiyosaki made his first purchase of the precious metal in 1972. He has explained in the past he doesn’t “trust” the Federal Reserve, which controls the supply of money.
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In October 2023, he predicted, “Gold will soon break through $2,100 and then take off. You will wish you had bought gold below $2,000. Next stop gold $3,700.”
It appears that the initial phase of his prediction is coming to fruition. Gold prices have surged, now standing at $2,158 per ounce.
Kiyosaki likes silver, too. “Silver from $23 to $68 an ounce,” he said in the October tweet, projecting major upside for the gray metal.
Silver is also experiencing a bullish trend, yet at $25.22 per ounce currently, it remains distant from Kiyosaki's prediction.
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Gold and silver have long been considered a popular hedge against inflation. The reason is simple: These precious metals can’t be printed out of thin air like fiat money.
Nowadays, it’s easy to add gold and silver to your portfolio.
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Bitcoin
Often dubbed digital gold, Bitcoin is witnessing a resurgence.
The price of the world’s largest cryptocurrency gained 150% in 2023, and has shot up another 55% in 2024.
In fact, Bitcoin recently surpassed $73,000, setting a new all-time high before retreating.
Kiyosaki projects even more growth for the cryptocurrency, which is known for its volatility.
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Earlier this month, he tweeted that the next stop for Bitcoin is $300,000 in 2024.
He encourages investors to seize the opportunity, stating, “The biggest mistake you can make is to procrastinate. Important to start, even if only for $500.”
If Kiyosaki is right in his prediction, it would imply an upside of over 300% from where the cryptocurrency sits today.
It’s very easy to buy Bitcoin these days. There are many online exchanges, brokers and even ATMs to purchase from. Be warned, they can charge up to 4% in commission fees, so look for ones that charge low or even zero commissions, and always make sure you're using a legitimate platform.
You may also consider the brand new spot bitcoin ETFs, like the BlackRock iShares Bitcoin ETF (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC).
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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.
