Robert Kiyosaki predicts US stock market crash — RT Business News
The finance guru earlier warned that raising interest rates to fight inflation could have a negative effect on stocks
Renowned writer and economist Robert Kiyosaki has warned investors of a stock market pullback in a Tweeter this week.
According to Kiyosaki, there is “too many signs” which signify a market collapse in the near future.
“Yet, too many signs indicate a serious stock market crash… If your future depends on stocks and bonds, be careful, possibly seek professional advice. Fear that depression is coming,“, he tweeted.
Kiyosaki, who predicted the collapse of Lehman Brothers in 2008, said he himself does not play the stock or bond markets, as he prefers”hands on control too.”
He didn’t elaborate on why he expects the shares to fall in his last tweet. Earlier, however, he predicted that the US Federal Reserve would raise interest rates to curb runaway prices, and warned that this would in turn lead to a crash in stocks, bonds, real estate and gold.
So far, he’s been right, as the country faced its worst inflation in decades in recent months, prompting the Fed to implement a series of interest rate hikes. The rate is currently 5% to 5.25%, compared to 0% at the start of 2022.
So far, US asset prices and economic growth have seemed resilient to higher borrowing costs. The benchmark S&P 500 is up 17% so far this year, and the Nasdaq Composite is up 35%, in part due to the surge in artificial intelligence betting.
However, in a tweet last week, Kiyosaki claims that the current stock market growth is not a sign of health, but the product of the suspension of the debt ceiling that Washington adopted last month to avoid a default.
“WHY is the stock market taking off? Because the “debt ceiling” has been removed. Means that the national debt will increase with the stock market. The rich get richer as America gets poorer. Sad. Stick to real money and real assets: gold, silver, bitcoin,“, he tweeted on July 14.
Total US debt now stands at more than $32 trillion and, according to a recent warning from the Congressional Budget Office (CBO), it will nearly double over the next three decades, from this year’s estimate of 98% of GDP to 181% by 2053, unless legislation is changed.
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