Robert Kiyosaki warned that a key economic signal was flashing bright red.Here are 3 suspension assets he loves

‘A major collapse is imminent’: Robert Kiyosaki warns that a key economic signal is flashing bright red.Here are 3 suspension assets he loves

Soaring inflation, rising interest rates and a slowing U.S. housing market continued to create jitters across the stock market.

but rich dad poor dad Author Robert Kiyosaki said the “real problem” is what’s happening in the bond market. Global government bond prices surged on Friday as weak economic data from the U.S. and Europe stoked fears of slowing global growth. Generally, investors see government bonds as a safe haven during times of economic stress.

In other words, a climbing bond market usually means bad news for the economy.

“The bond market is 40 times the stock market. Please pay attention to bonds, not stocks,” Kiyosaki tweeted on Friday. “A major accident is imminent. Be careful.”

good news? Kiyosaki also offered insight on how he is preparing for the seemingly inevitable downturn.

“I’m buying more gold, silver now and waiting for bitcoin to go lower.”

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gold

This is Kiyosaki’s easiest recommendation. Gold has been the safe-haven asset of choice for centuries.

It cannot be printed out of thin air like fiat currency, and its value is largely unaffected by economic events around the world.

Investors often flock to gold in times of crisis, so it makes sense to be one step ahead.

The most straightforward way to play with gold is to own gold bars. But that can be difficult and expensive. An easier way is to invest in large gold mining companies.

If the price of gold rises, these miners will earn higher revenue and profits, which tends to translate into higher stock prices.

For example, companies like Barrick Gold, Newmont and Freeport-McMoRan typically do well during tough times in other industries.

silver

It’s no surprise that Kiyosaki likes silver. Like gold, silver can serve as a store of value and a hedge against rising interest rates and inflation.

The grey metal may not look exciting, but it can be a very effective way to hold during uncertain times. Silver prices have risen slightly over the past two years.

As you might expect, rising silver prices benefit silver miners.

Some of the easiest ways to play silver are through big miners like Wheaton Precious Metals, Pan American Silver, and Coeur Mining.

That is, silver is also widely used as an industrial metal. Therefore, a downturn in global economic activity could have a negative impact on silver prices.

bitcoin

Once considered a niche asset, Bitcoin has now entered the mainstream. But it has lost a lot of its appeal, falling 53% by 2022.

Contrarian investors may want to take a closer look, though.

You can buy bitcoin directly. But if you don’t like the volatility, you can also invest in companies that are pegged to the cryptocurrency market.

For example, in October, PayPal launched a service in the United States that allows users to buy, sell and hold cryptocurrencies. It launched a similar product for the UK in late August.

Then there is MicroStrategy, the largest Bitcoin enterprise holder. As of June 28, the enterprise software technologist held 129,699 bitcoins worth about $4 billion.

Because of MicroStrategy’s large stake in Bitcoin, some investors use it as a proxy for investing in cryptocurrencies. In the past, Bitcoin’s rises (falls) have often led to similar rises (falls) in MicroStrategy’s stock price.

what to read next

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This article is for information only and should not be considered advice. It does not provide any kind of guarantee.

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