The U.S. stock market is headed for ‘giant crash’ followed by a new
Expert predictions for a U.S. stock market correction are common these days.
But thanks to sky-high inflation rates, Rich Dad Poor Dad author Robert Kiyosaki is calling for something much worse.
“Inflation rips off the poor. Inflation makes rich richer,” he tweeted last week. “Prepare: Giant crash then new depression.”
It’s not the first time Kiyosaki has sounded the alarm.
In September, he told Kitco News that “the biggest crash in world history” would hit in October. While that prediction didn’t even come close being right — the S&P 500 climbed 6.9% last month — Kiyosaki isn’t backing down from his ultra-bearish stance.
In fact, the famous author reiterated his belief that there are only three “smart” investments to buy right now: gold, silver and Bitcoin.
Let’s take a quick look at this trio of safe havens. They could be worth buying with some of your leftover pennies.
Bitcoin
“I love Bitcoin because I do not trust Fed, Treasury, or Wall Street,” Kiyosaki tweeted last month.
Many consider the rise of Bitcoin a reflection of peoples’ growing distrust in fiat money. Unlike fiat currency, Bitcoin can’t be printed out of thin air. Instead, the number of bitcoins is capped at 21 million by mathematical algorithms.
Year to date, the price of Bitcoin has already more than doubled.
Investors can gain exposure to the world’s largest cryptocurrency through the ProShares Bitcoin Strategy ETF. Companies that have tied themselves to the crypto market — like Coinbase and MicroStrategy — present another option to capitalize on the crypto boom.
Or, you can buy Bitcoin directly. Today, many exchanges charge up to 4% in commission fees just to buy and sell crypto. But some investing apps charge 0%.
And there’s no need to buy a whole coin. You can start with as little as $1.
Gold
Many call crypto the new gold. But while Kiyosaki highly recommends Bitcoin, he still likes the good old yellow metal as a hedge against a looming downturn.
Gold is the classic safe-haven asset. Investors have leaned on it to help preserve their wealth for centuries. In times of crisis, demand for the precious metal often goes up.
From 2007 to 2009 — when the U.S. stock market tumbled amid the mortgage crisis — the price of gold surged more than 60%.
You can buy gold coins and bars at your local bullion shop. You can also invest in ETFs like SPDR Gold Shares.
Gold mining companies are another option. When gold price increases, miners like Barrick Gold and Freeport-McMoRan can thrive.
Gold has been trading sideways for several weeks. If you’re on the fence about jumping in right now, some apps might give you a free share of a gold mining stock just for signing up.
Silver
Silver may live in the shadow of both gold…
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