Robert Kiyosaki rose to fame in 1997 after Wealthy Dad Poor Dad was revealed. His private finance guide went on to promote over 26 million copies and stay on the New York Instances best-seller checklist for nearly six years.
The investor and entrepreneur additionally wrote a number of different books that did not obtain the extent of success as Wealthy Dad Poor Dad. They embrace Wealthy Dad’s Prophecy, during which Kiyosaki and Sharon Lechter defined why “the largest inventory market crash in historical past remains to be coming.”
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Over twenty years have elapsed since Kiyosaki and Lechter initially warned about an enormous stock market crash. However now Kiyosaki thinks a serious market meltdown is imminent.
Picture supply: Getty Pictures.
Kiyosaki’s gloom-and-doom prophecies
Kiyosaki posted to X, previously often called Twitter, final week reminding his social media followers concerning the 2013 reprinting of Wealthy Dad’s Prophecy. He identified that the guide predicted essentially the most extreme inventory market crash ever was on the best way, including, “That crash might be in February 2025.”
This wasn’t the primary time in current months that Kiyosaki warned a few inventory market crash. On Nov. 9, he posted on X, “Do not be a loser and panic throughout this crash.” Roughly six weeks later, he tweeted:
International crash has began. Europe, China, USA taking place. Despair forward?
On Jan. 4, Kiyosaki pointed to the 2013 printing of Wealthy Dad’s Prophecy in a put up on X, stating, “Sadly, RD’s Prophecy is right here.” Three days later, he once more referenced his earlier guide, tweeting: “Prophecy predicted the largest inventory market crash in historical past was coming. That CRASH is NOW.”
Kiyosaki’s spotty observe report
Kiyosaki’s predictions have typically been remarkably prescient. For instance, on Aug. 14, 2023, he stated that the worth of Bitcoin (CRYPTO: BTC) would rise to $100,000. On the time, the cryptocurrency’s value was under $29,300. Bitcoin topped $100,000 for the primary time late final yr.
Bitcoin Price knowledge by YCharts
Nonetheless, the investor/author has additionally incessantly been improper. The following week after predicting that Bitcoin would attain $100,000, Kiyosaki stated that the cryptocurrency would hit $120,000 in 2024. It did not occur — and Bitcoin has but to achieve that degree.
In January 2023, Kiyosaki posted on X, “Sadly we’re in [a] world recession.” We weren’t. On Feb. 10, 2023, he proclaimed that the “crash is right here.” Practically three months later, he once more tweeted, “[The] crash is now.” Nonetheless, the S&P 500 completed the yr up 24%.
Kiyosaki argued in an X put up on Feb. 2, 2024, “Inventory & Bond markets about to crash.” They did not. The S&P 500 jumped 23% in 2024. The Vanguard Complete Bond Market ETF, a proxy for the bond market, completed the yr down roughly 2% — a far cry from a crash.
What ought to buyers do if he is proper?
However let’s assume that Kiyosaki is right that the largest inventory market crash in historical past will occur this month. What ought to buyers do if he is proper?
Kiyosaki has promoted shopping for gold, silver, and Bitcoin for years. He thinks that “Bitcoin will increase, increase, increase.” Kiyosaki additionally talked about in his X put up final week, “[I]n a crash, all the things goes on sale.”
I do not imagine the doom-and-gloom prophecy that the best inventory market crash ever is imminent. However I do agree with a few of Kiyosaki’s factors. Traders could view Bitcoin as a haven if the market plunges, simply as they’ve with gold and silver throughout some inventory market crashes prior to now. U.S. Treasuries are additionally a favourite place for buyers to park their cash throughout tumultuous instances. Ought to the market decline considerably, many good shares could be obtainable at a steep low cost.
With all of this in thoughts, my view is that buyers could be smart to do what Warren Buffett is doing. Put some cash in protected havens equivalent to Treasuries. (Buffett is not a fan of Bitcoin or commodities equivalent to gold, however they’re viable choices, too.) Be ready to purchase shares of well-run firms with distinctive long-term prospects in the event that they go on sale.
Most significantly, although, Buffett at all times focuses on the long run. He is aware of that the inventory market has delivered strong returns over the long term and can seemingly proceed to take action sooner or later. That is “wealthy dad” knowledge value heeding, for my part.
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Keith Speights has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Bitcoin and Vanguard Complete Bond Market ETF. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
