'END OF THE AMERICAN EMPIRE?': Robert Kiyosaki warns the S&P 500 is 'about to crash by 70%' — compares the US economy to the fall of ancient Rome and says 'stupidity repeats.' Do you agree?
The positive trajectory of stocks in 2023 has extended into 2024. However, Robert Kiyosaki, the bestselling author of "Rich Dad Poor Dad," foresees a grim future for stock market investors.
“The S&P is about to crash by 70%,” he declared in a recent tweet, urging his audience to “prepare for the biggest crash in history.”
Don’t miss
Commercial real estate has beaten the stock market for 25 years — but only the super rich could buy in. Here’s how even ordinary investors can become the landlord of Walmart, Whole Foods or Kroger
Inflation is still white-hot in 2024 — use these 3 'real assets’ to protect your wealth today, no matter what the US Fed does or says
Anything can happen in 2024. Try these 5 easy money hacks to help you make and save thousands of dollars in the new year (they will only take seconds)
His warning starkly contrasts with the benchmark index's recent performance: The S&P 500 surged by 24% in 2023 and has already risen 5% in 2024.
Yet, the personal finance expert's caution extends beyond a mere stock market crash; he is also alerting people to the potential decline of U.S. dominance.
Will history repeat?
In a tweet earlier this month, Kiyosaki posed the question, “END OF THE AMERICAN EMPIRE?”
He highlighted Americans' willingness to wager significant amounts of money on the Super Bowl and the country's staggering debt levels.
“This week Americans will bet $68 billion on a game. At the same time America’s debt is the highest in world history, a debt America can never back,” he said.
Kiyosaki did not cite a source for the $68 billion figure. The American Gaming Association said a record 68 million American adults were expected to wager $23.1 billion on Super Bowl LVIII. Anti-fraud company GeoComply says the number of verification checks it conducted over the Super Bowl weekend was up 22% compared to the previous year.
On the debt front, America indeed faces a challenge. The latest data from the Treasury Department shows that the U.S. national debt has now surpassed an astonishing $34 trillion.
The massive debt, along with the betting on the sporting event, prompted Kiyosaki to draw parallels with the fall of an ancient empire.
“The Roman Empire ended in the same way with massive gladiators entertaining chubby Romans while their bankers debased their currency to pay soldiers and bills,” he tweeted.
Read more: Thanks to Jeff Bezos, you can now cash in on prime real estate — without the headache of being a landlord. Here's how
Soft landing in a hard crash?
Kiyosaki’s warning is unequivocal: “HISTORY REPEATS because STUPIDITY REPEATS. Don’t be stupid.”
Given his dire predictions, investors may wonder where to seek refuge.
Kiyosaki's suggestions are straightforward (and predictable): “Bet instead on gold, silver, Bitcoin.”
He has long advocated for these three assets due to his lack of confidence in fiat currency.
In another recent tweet, he cautioned that “the world of fake money is crashing” and that “we are not going in for a soft landing.”
Once again, he recommended the three assets as safeguards, stating that gold, silver and Bitcoin “are parachutes for your personal soft landing.”
To be sure, the U.S. economy continues to demonstrate growth. In Q4 of 2023, real GDP in the U.S. grew at an annual rate of 3.3%, according to the Commerce Department’s advance estimate. This growth significantly exceeded economists' expectations of a 2% increase.
What to read next
Rich young Americans have lost confidence in the stock market — and are betting on these 3 assets instead. Get in now for strong long-term tailwinds
Robert Kiyosaki warns 401(k)s and IRAs will be 'toast' after the 'biggest crash in history' — protect yourself now with these shockproof assets
Credit card debt under inflation's shadow: The 4 potent weapons you need to have for a strong financial resurgence
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
