"Rich Dad Poor Dad" Author Anticipates Major Market Crash

Renowned entrepreneur and bestselling author of "Rich Dad Poor Dad," Robert Kiyosaki, voiced his concerns on Sunday about the possible collapse of the stock and bond markets.

by Faruk Imamovic
SHARE
"Rich Dad Poor Dad" Author Anticipates Major Market Crash

Renowned entrepreneur and bestselling author of "Rich Dad Poor Dad," Robert Kiyosaki, voiced his concerns on Sunday about the possible collapse of the stock and bond markets. Despite the S&P 500 index showing a rally of 17% this year and the tech-heavy Nasdaq Composite soaring by 35%, Kiyosaki remains skeptical.

Kiyosaki's Market Fears

In a tweet, Kiyosaki explained his apprehension, "I do not play the stock or bond markets. As an entrepreneur, I like my hands-on control too much. Yet too many signs point to a severe stock market crash." The self-made millionaire further advised caution to investors whose futures depend on stocks and bonds.

"If your future depends on stocks and bonds please be careful, possibly ask for professional advice. Afraid depression coming," he warned.

Kiyosaki's pessimistic view comes despite investors' optimism around artificial intelligence's potential to boost corporate profits, a sentiment that has contributed significantly to the Nasdaq's substantial growth.

Comparisons to the Dot-Com Bubble

Nevertheless, some commentators have drawn parallels between the current AI boom and the dot-com bubble of the late 1990s, cautioning that the technology might be overhyped. Speculation surrounding Nvidia and other tech-related stocks has pushed their valuations to what many believe are unsustainable highs, adding weight to the impending crash argument.

Kiyosaki's past predictions have displayed a degree of accuracy. In May 2021, he forecasted that the Federal Reserve would hike rates to control inflation, an action he believed would trigger a crash in stocks, bonds, real estate, and gold.

While he correctly anticipated the rate hikes, asset prices and economic growth have managed to withstand the higher borrowing costs, dispelling some of his forecast.

Advocating for Haven Assets

Kiyosaki, a known critic of the Biden administration, has been voicing concerns over a possible epic market crash for over two years.

During this time, he has persistently advocated for the use of gold, silver, and Bitcoin as haven assets - investments seen as safe bets during turbulent times. Despite the healthy current state of the market, Kiyosaki's cautionary advice serves as a reminder of the potential volatility in financial markets. Whether his dire predictions will come to pass remains to be seen.

SHARE