‘Crash and Depression’ Coming – Here are 6 Easy Ways He Will Get Rich From The Consequences
US consumer prices rose 6.8% in November, the fastest increase in 39 years. And while the stock market continues to largely ignore inflation concerns, many big-name investors have been busy raising the alarm.
Rich father, poor father Author Robert Kiyosaki is one of the louder.
“Crash and depression are coming,” Kiyosaki tweeted earlier this week. “Time to get richer after fake inflation collapses. Be careful. Watch out.”
Of course, Kiyosaki has been making similar calls over the past few months that haven’t quite worked out. In September, he told Kitco News that “the greatest crash in world history” would take place in October.
But Kiyosaki isn’t giving up on its ultra-bearish stance. In fact, he’s doubling his favorite inflation-fighting assets.
“I’m buying more gold, silver, Bitcoin, Ethereum, rental property and oil,” he wrote in a tweet last month.
For those who share Kiyosaki’s concerns, let’s take a quick look at these inflation hedges. It might be worth investing in one with some of your extra cash.
gold and silver
The famous author is a longtime advocate of investing in precious metals. And it’s obvious why he still hits the table on the two most popular ones: gold and silver.
Gold has helped investors preserve their wealth for centuries. It cannot be printed out of nowhere like fiat money and its value is largely unaffected by economic events around the world.
Silver can also be a store of value and a hedge against inflation. In addition, silver is an industrial metal. It is widely used in the manufacture of solar panels and is also a critical component in the electrical control units of many vehicles.
You can buy physical gold and silver at your local bullion store. Or you can check out large-cap miners like Barrick Gold, Newmont, and Wheaton Precious Metals.
If gold and silver prices rise, these miners are very likely to thrive.
Bitcoin and Ethereum
Some think Bitcoin is the new gold. And Kiyosaki likes it too.
When bitcoin surged above $ 60,000 in October, the author tweeted that the future of cryptocurrency was “very bright,” but just waited for a decline before investing more.
Well, Bitcoin has certainly pulled back since then and is currently trading at around $ 47,660.
Kiyosaki is also buying Ethereum. While Ethereum isn’t as big or as popular as Bitcoin, its use in peer-to-peer lending, NFTs, gaming, and stablecoins means crypto investors shouldn’t ignore it.
You can buy Bitcoin and Ethereum directly.
Today, many exchanges charge up to 4% commission fees just to buy and sell crypto. But some investing apps charge 0%.
You can also invest in companies that have committed themselves to the crypto market.
HIVE Blockchain, for example, mines both Bitcoin and Ethereum. The stock is up about 55% since the start of the year.
There is also Coinbase, which operates the largest cryptocurrency exchange in the United States. With 7.4 million monthly users, the company had third-quarter revenues of $ 1.24 billion.
Of course, Coinbase is currently trading at $ 270 per share. But you can own a slice of the crypto exchange with a popular stock trading app that allows you to buy fractions of stocks with as much money as you want to spend.
Owning real estate has historically been one of the most effective ways to both hedge against inflation and generate passive income.
And nowadays you don’t have to be a landlord to do this.
There are many publicly traded real estate investment trusts that offer investors generous cash distributions. These companies own income-generating properties, collect rents from tenants, and then pass the money on to shareholders in the form of regular dividends.
Realty Income has been purchasing and managing commercial real estate for over five decades. It generates rental income from long-term net rental agreements and pays monthly dividends to investors.
You can also search outside of the exchange.
For example, some popular investment services can help you get a steady stream of rental income from investing in prime commercial real estate – from research and development locations in San Jose to industrial e-commerce warehouses in Baltimore.
One of the surest signs of rising inflation is the commodities rally we saw earlier this year. In fact, commodity prices are widely viewed as a leading indicator of inflation.
So it’s no wonder that oil – the world’s most traded commodity – is also on Kiyosaki’s list.
The price of crude oil fell last month but is still up more than 40% year to date.
As expected, oil producers are benefiting from strong oil prices. So far this year, investors have seen above-average returns from names like Chevron (40%), Exxon Mobil (51%) and ConocoPhillips (84%).
However, investing in raw materials is a particularly volatile endeavor.
If you’d rather invest in something without the extreme ups and downs of stocks, cryptos, and commodities, take a look at some under the radar alternative assets.
Traditionally, investing in exotic vehicles or funding litigation or even shipping finance have only been options for the ultra-rich like Kiyosaki.
But with the help of new platforms, such opportunities are now also open to private investors.
This article is for information only and is not intended as advice. It is provided without any guarantee.