In 2023, the U.S. stock market exhibited remarkable growth, and the most recent gross domestic product (GDP) reading surpassed forecasts. However, Robert Kiyosaki, the author of “Rich Dad Poor Dad,” suggests that the situation may not be as optimistic as it seems.
Despite certain experts anticipating a gentle economic slowdown in the U.S., Kiyosaki holds a more pessimistic view.
“Don’t they know the stock market is up because Biden raised debt ceiling. America’s debt is going up … so stock market going up,” he recently tweeted. “America is broke.”
The worries expressed by the author regarding the mounting debt of the United States found an echo in Fitch Ratings. In close succession to that social media post, Fitch downgraded the country’s long-term foreign-currency issuer default rating from AAA to AA+. They’re declaring that an “expected fiscal deterioration over the next three years,” a “high and growing general government debt burden,” and an “erosion of governance” as reasons behind the decision.
In light of this serious caution, where should apprehensive investors seek guidance? Here’s a closer look at his favorite assets.
Contemporary Art
You might assume that investing in iconic artworks created by artists like Banksy and Andy Warhol is a possibility reserved solely for the exceedingly wealthy.
However, thanks to an investment platform named Masterworks, you can also partake in investing in multimillion-dollar artworks, similar to the ones collected by Jeff Bezos and Bill Gates.
On average, Contemporary Art has shown an appreciation in value by approximately 14% annually, a notably higher figure than the average returns of 9.5% of the S&P 500.
Investing with Masterworks affords you the advantage of circumventing several of the drawbacks inherent in art investment. There’s no necessity to scour garage sales in pursuit of a forgotten masterpiece by a renowned artist, and you won’t face the urgency to locate a buyer if you require swift share liquidation.
Masterworks stands as a pioneering art investment platform and is currently accessible through invitation only.
If you aspire to possess a slice of art history and advance towards your first million, you can request an invitation with this exclusive link.
Gold And Silver
Across millennia, gold and silver have fulfilled the role of a reliable store of value.
Even though headline inflation has declined in recent months, the cost of numerous essentials, such as sustenance and housing, remains elevated. If you hold the view that inflationary pressures persist on the horizon, reconsidering these metals could be prudent.
Simultaneously, gold and silver have historically been acknowledged as haven assets, offering investors protection against economic uncertainty and geopolitical instabilities. During periods of political turmoil, conflicts, and other upheavals, these metals have frequently been sought as a sanctuary due to their worldwide recognition and enduring value.
Investors can access this realm through exchange-traded funds (ETFs) like the SPDR Gold Shares (NYSE: GLD) and the iShares Silver Trust (NYSE: SLV). Kiyosaki shared that he is “avoiding the SLVs or the GLDs.” Instead, he gravitates toward physical bullion.
While some contend that Bitcoin is the modern equivalent of gold, Kiyosaki, a long-standing proponent of the traditional precious metal, also holds a positive view on cryptocurrency.
Bitcoin
In a tweet last month, he stated, “Bitcoin to $120K next year.”
Considering the current trading value of Bitcoin at $29,360, Kiyosaki’s projected price indicates a potential surge exceeding 300%.
One of the captivating aspects of Bitcoin is its finite supply of 21 million coins. This contrasts starkly with fiat currencies, which central banks can generate without restriction.
Bitcoin’s decentralization is another defining attribute, allowing it to operate autonomously from central banks and conventional financial systems. It serves as an alternate method for preserving and transferring value, particularly in circumstances where a nation’s economy or currency is faltering – Bitcoins can be sent and received worldwide.
Acquiring and selling Bitcoin is now straightforward. However, the cryptocurrency is subject to volatility. While Bitcoin’s value has surged by 76% this year, it remains more than 50% below its peak in November 2021.
