Author and renowned investor Robert Kiyosaki sees worrying signs in current economic indicators, particularly the soaring price of gold, which he believes could signal an imminent collapse across all markets. In his view, such economic indicators often serve as a prelude to a broader recession, pointing to systemic weaknesses in the global financial structure.
In a detailed statement shared on social media platform X on October 12, Kiyosaki expressed his concerns about the continued highs in the stock market. According to him, this is a red flag, indicating an over-inflated market that is about to correct. The investor noted that gold hitting new highs is traditionally a sign of investor pessimism. He further explained that when investors lose confidence in more volatile assets like stocks, they tend to move to what are considered safer assets, such as gold.
Kiyosaki, who has personally invested in gold for more than 24 years, emphasized the difference between owning physical gold versus a paper gold ETF. He noted that those who have invested in gold have generally seen favorable results. However, the rise in gold prices, which have been up more than 30% in 2024, may not necessarily equate to a healthy market environment. Instead, it may indicate that investors are preparing for more difficult economic times ahead.
Investment strategies in volatile times
He recalled historical trends where investors, faced with a crisis, shifted their capital from stocks to 'defensive assets' such as gold. Kiyosaki predicted that a rapid decline in the stock market could trigger a domino effect, potentially leading to a collapse across all market sectors. He felt strongly that such a collapse was imminent due to the prolonged period of high market levels, which he considered unsustainable.
Despite his gloomy forecast for the stock market and the possibility of an initial drop in Bitcoin prices, possibly to $5,000, Kiyosaki remains optimistic about the long-term prospects of the digital currency. He predicts that Bitcoin could eventually recover to surpass $250,000. His strategy is to take advantage of market downturns by buying Bitcoin and other assets at bargain prices and waiting for their value to increase.
The essence of Kiyosaki’s message is to be prepared. By carefully studying the markets and making smart investment choices, individuals can position themselves to weather the downturn and emerge financially stronger. His advice reflects a broader sentiment shared by financial experts around the world, including billionaire Elon Musk and former US President Donald Trump, who have also expressed concerns about current fiscal policies and the potential for them to lead the economy into recession.
