Multimillionaire investor Robert Kiyosaki once again warned that due to the poor economic situation in the United States “The biggest collapse in world history is coming.”
“Only naive people believe that the US economy is still strong. Don’t be fooled. The Magnificent Seven” (Nvidia NVDA, Tesla TSLA, Meta Platforms META, Apple AAPL, Amazon.com AMZN, Microsoft MSFT and Alphabet GOOGL/GOOG), funded by government dollars USA, supports the stock market. Note. The stock and bond markets are about to collapse.”
It should be noted that the Dow Jones Industrial Average, Nasdaq Composite Index and S&P 500 Index have all risen significantly in recent weeks, with the S&P 500 Index hitting a new all-time high.
Strong corporate earnings and better-than-expected January jobs announcements are fueling apparent market strength.
However, Kiyosaki believes that economic conditions are fundamentally much weaker than they really are.
He attributes the continued rise of the stock market to what he calls “The Magnificent Seven”referring to a well-known group of large companies, including Apple, Alphabet, Meta Platforms, Amazon, Microsoft, NVIDIA and Tesla, which are artificially supported by government funding.
The economist’s cautious stance extends beyond the stock market, as he predicts crashes in both the stock and bond markets.
According to Kiyosaki, Bitcoin serves as a hedge against the erosion of wealth perpetrated by the Federal Reserve, the Treasury Secretary and Wall Street bankers.
He believes Bitcoin could reach $150,000 in the next few years.
“There have been countless speculative bubbles over the last 500 years involving everything from the tulip bubble, railroads, real estate, technology, emerging markets (5 times), cars, commodities, and Bitcoin.
During the bubble creation stage, every time someone said and believed that “this time everything will be different.” But all financial bubbles, regardless of the factors underlying them, had much in common: Huge investments by speculative retail investors and a sincere belief that “this time things will be different.”
What can lead to collapse?
Historically, stock market crashes have always been caused by a few specific reasons.
- An unexpected, exogenous event that changes economic prospects (geopolitical crisis, war, pandemic).
- rapid rise in interest rates.
- Sudden rise in inflation.
- Credit events affecting the financial system (bankruptcies, foreclosures, foreclosures, bankruptcy).
- Monetary events (exchange rate crisis).
It should also be remembered that the event that leads to collapse is always unexpected – and causes a rapid change of emotions from “greed” to “fear”.
In short, the “crash” occurs when people suddenly realize that all their investments were in assets that are actually “air.”
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