The US stock market showed impressive gains in 2023, and the latest GDP number beat expectations. But according to Rich Dad Poor Dad author Robert Kiyosaki, the picture may not be as rosy as it seems.
“Don’t they know that the stock market is going up because Biden raised the debt ceiling? America’s debt is going up… and the stock market is going up,” he wrote in a recent tweet. “America is bankrupt.”
The author’s concern about mounting US debt is echoed by Fitch Ratings. Shortly after that tweet, Fitch downgraded the long-term FX issuer’s default rating for the United States from AAA to AA+. The credit rating agency cited “expected financial deterioration over the next three years”, “high and increasing general government debt burden” and “erosion of governance” as the reasons behind the decision.
While some experts predict a soft landing for the US economy, Kiyosaki is less optimistic.
“First shoe to fall,” he wrote on Twitter. Credit rating services Fitch downgraded the United States credit rating from AAA to AA+. “Sorry for the bad news, however, I have been warning for over a year that the Federal Reserve, Treasury, and CEOs For big companies, they smoke fancy weed.”
Given this stark warning, where should anxious investors turn?
“I still prefer gold, silver and bitcoin,” said Kiyosaki.
Here’s a closer look at these assets.
Gold and silver
For thousands of years, gold and silver have served as a reliable store of value.
Unlike fiat money, which can be produced in unlimited quantities, these precious metals have an inherent scarcity, which makes them a valuable hedge against inflation. While general inflation has fallen recently, price levels for many necessities – such as food and housing – remain high. If you think inflationary pressures are still on the horizon, you might like this Take a second look at these minerals.
At the same time, gold and silver have historically been recognized as safe haven assets, providing investors with a hedge against economic uncertainty and geopolitical risks. In times of political upheaval, wars, and other crises, gold and silver are often sought after as a haven, due to their global recognition and value.
Investors can gain exposure to the sector through exchange-traded funds (ETFs) such as SPDR Gold Stock (NYSE: GLD) and iShares Silver Trust (NYSE: SLV). However, in an interview earlier this year, Kiyosaki said he was “walking away from SLVs or GLDs” because he didn’t want “any counterparty risk.” Instead, physical alloys are preferred.
Some say that bitcoin is the new gold. While Kiyosaki has been a longtime fan of the good old yellow metal, he also loves cryptocurrency.
Last month, he tweeted, “Bitcoin to $120K next year.”
Given that Bitcoin is currently trading at $29,360, Kiyosaki’s price target indicates a potential upside of more than 300%.
One of the things that makes Bitcoin attractive is that it has a total supply of 21 million coins. This is in stark contrast to fiat currencies, which can be printed at will by central banks.
Another distinguishing feature of Bitcoin is that it is decentralized, which means that it operates independently of central banks and traditional financial systems. It can also act as an alternative means of storing and transferring value should a country’s economy or currency falter – it is possible to send and receive bitcoins anywhere in the world.
It is easy to buy and sell bitcoin these days. But cryptocurrency is volatile. While the bitcoin price is up 76% year-to-date, it is still down more than 50% from its peak in November 2021.
If you don’t like rollercoaster rides, you might want to look into reliable income plays outside of the crypto world like Investing in rental properties for less than $100 while staying completely out of reach.
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This article ‘America Is Broke’: Robert Kiyosaki warns a bad landing is coming, says the Fed has been ‘smoking fantasy weed’ – here are the 3 assets he loves to demonstrate shocks appeared in the original Benzinga.com
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