Renewed Warning: Stock and Bond Markets on the Verge of Crashing, Says Robert Kiyosaki
Renowned author Robert Kiyosaki, best known for his book Rich Dad Poor Dad, has once again issued a warning about the impending crash of the stock and bond markets. Despite the stock market's upward trajectory, Kiyosaki insists that the belief in a strong economy is misguided and advises against being deceived by it. In fact, he goes a step further and suggests that the next crash could potentially lead to a depression.
Kiyosaki's Latest Market Crash Warning
Robert Kiyosaki, the co-author of the popular book Rich Dad Poor Dad, has made headlines once again with his prediction of an imminent crash in the stock and bond markets. Since its publication in 1997, Rich Dad Poor Dad, written in collaboration with Sharon Lechter, has enjoyed remarkable success, spending over six years on the New York Times Best Seller List and selling more than 32 million copies across 109 countries in 51 different languages.
On social media platform X, Kiyosaki expressed his concerns, stating, "The stock market is climbing higher and higher. Suckers actually believe the economy is strong. Don't be fooled. The Magnificent 7 financed by U.S. government dollars keeps stock market up." It is worth noting that the "Magnificent 7" refers to seven prominent tech companies: Tesla, Meta, Alphabet, Amazon, Apple, Microsoft, and Nvidia.
Kiyosaki's Ongoing Warnings
Robert Kiyosaki has been consistent in his warnings about the likelihood of market crashes. He has repeatedly expressed his lack of trust in institutions such as the Federal Reserve, the Biden administration, the Treasury Department, and Wall Street bankers. According to Kiyosaki, these leaders will ultimately drive the U.S. economy into a depression and potentially even another war. This sentiment was first shared by Kiyosaki in December of last year when he warned of the possibility of a depression resulting from the next market crash.
Just last month, Kiyosaki cautioned investors about the escalating national debt and encouraged them to consider investing in bitcoin. This week, he further elaborated on his reasoning for holding BTC, emphasizing its role in protecting wealth from potential theft. In light of the recent approval of spot bitcoin exchange-traded funds by the U.S. Securities and Exchange Commission, Kiyosaki disclosed that he has increased his bitcoin holdings. He predicts that BTC will reach $150K in the near future and advises investors to closely monitor the upcoming Bitcoin halving event.
What do you think about Robert Kiyosaki's prediction regarding the impending crashes in the stock and bond markets? Share your thoughts in the comments section below.
Frequently Asked Questions
How much of your portfolio should be in precious metals?
To answer this question we need to first define precious metals. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them highly valuable for both investment and trading. The most traded precious metal is gold.
There are however many other types, including silver, and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It also remains relatively unaffected by inflation and deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. They do not always move in the same direction. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
When the economy is healthy, however, the opposite effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. Since these are scarce, they become more expensive and decrease in value.
To maximize your profits when investing in precious metals, diversify across different precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
How much of your IRA should include precious metals?
You should remember that precious metals are not only for the wealthy. You don't need to be rich to make an investment in precious metals. You can actually make money without spending a lot on gold or silver investments.
You might also be interested in buying physical coins, such bullion rounds or bars. Stocks in companies that produce precious materials could be purchased. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. Although they aren’t stocks, they offer the possibility for long-term gains.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
How to Open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). To open the account, complete Form 8606. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form should be completed within 60 days after opening the account. Once this has been completed, you can begin investing. You can also choose to pay your salary directly by making a payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process is identical to an ordinary IRA.
To be eligible for a precious metals IRA, you will need to meet certain requirements. The IRS states that you must be at least 18 and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Contributions must be made on a regular basis. These rules are applicable whether you contribute through your employer or directly from the paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, physical bullion will not be available for purchase. This means you can't trade shares of stock and bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option is available from some IRA providers.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they are not as liquid or as easy to sell as stocks and bonds. It is therefore harder to sell them when required. Second, they are not able to generate dividends as stocks and bonds. You'll lose your money over time, rather than making it.
Is physical gold allowed in an IRA.
Not just paper money or coins, gold is money. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. During these turbulent market times, gold was among few assets that outperformed the stocks.
The best thing about gold investing is the fact that there's virtually no counterparty risk. You still have your shares even if your stock portfolio falls. If you have gold, it will still be worth your shares even if the company in which you invested defaults on its debt.
Finally, gold provides liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you to take advantage of short-term fluctuations in the gold market.
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads, Example, and Risk Metrics
Gold IRAs are a growing trend
As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.
The gold IRA allows owners to invest in physical gold bullion and bars. This IRA can be used to grow your wealth tax-free and is an alternative option to stocks and bonds.
Investors can have confidence in their investments and avoid market volatility with a gold IRA. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
In addition, the gold IRA offers several other advantages, including the ability to quickly transfer ownership of the gold to heirs and the fact that the IRS does not consider gold a currency or a commodity.
All this means that the gold IRA is becoming increasingly popular among investors seeking a haven during financial uncertainty.
By: Kevin Helms
Title: Rich Dad Poor Dad Author Robert Kiyosaki Warns Stock and Bond Markets Are ‘About to Crash’
Sourced From: news.bitcoin.com/rich-dad-poor-dad-author-robert-kiyosaki-warns-stock-and-bond-markets-are-about-to-crash/
Published Date: Sun, 04 Feb 2024 01:00:59 +0000