“Rich Dad, Poor Dad’ author Robert Kiyosaki warned that the market could be headed for a crash and suggested that an economic depression could be brewing as well, in a recent tweet.
Kiyosaki suggested that gold
GC00,
-0.10%,
silver
SI00,
+0.09%,
bitcoin
BTCUSD,
+2.71%
and real estate
XLRE,
+0.51%
are likely to get swept up in the sweeping financial downturn. He didn’t specify when he thought things would go pear-shaped. And he said that he would be a buyer off all the assets after their values are depressed.
His remarks come as the U.S. registered the hottest U.S. consumer inflation reading in almost 40 years.
The cost of living climbed again in November and drove the rate of U.S. inflation to a nearly 40-year of 6.8%, putting more pressure on households as they confront rising prices of gas, food, cars, rent and so forth.
Kiyosaki’s comments also come as the Dow Jones Industrial Average
DJIA,
+0.60%,
the S&P 500 index
SPX,
+0.95%
and the Nasdaq Composite Index
COMP,
+0.73%
were floating near all-time record closes.
To be sure, the author has been offering a gloomy assessment of financial markets for a while now and it has yet to come to pass. That said, there are a number of pundits and market observers who have been expressing concern about valuations and about the Federal Reserve against the backdrop of the COVID pandemic.
Kiyosaki’s prediction of an economic depression might be unlikely, but there is certainly more focus on the outlook for business as the economy emerges from a pandemic with the Federal Reserve tightening monetary policy and government stimulus spending winding down, leaving analysts to worry that valuations are richer than they should be.
