Economic market crashes are inevitable and I wanted to learn more. I recently found a YouTube video called “Robert Kiyosaki Predicts a Horrible Economic Crisis Where EVERYTHING WILL COLLAPSE” where Robert Kiyosaki and other high-profile investors (Patrick Bet-David) exchange their views and opinions as to why many Americans will suffer financially during the next market crash. I think Kiyosaki explains himself well and more specifically how market crashes can be beneficial for investors. His explanations shed light on new ways of thinking in the business world.
Perhaps many Americans suffer during these times because as a whole we are financially uneducated.
Education System
The first area Kiyosaki covers is the education system in America. I thought this was interesting because as Americans we tend to think we are highly educated due to the abundance of university students we have. After Kiyosaki further elaborates he unveils that the education system in the U.S. is failing to teach students about money. I find this unsettling because money plays a large role in our lives, so how is nothing being taught in school about money?
This is where I begin to see a problem because many people suffer financially during times of crisis. Perhaps many Americans suffer during these times because as a whole we are financially uneducated. I like that Kiyosaki is bringing up this problem because I think a majority of the population is completely unaware. I think it’s important to educate yourself financially, so you understand the moving parts of a market crash.
Robert Kiyosaki
Source: Toolshero
The Value of the Dollar
Kiyosaki explains another reason why people suffer during times of crisis and that is trusting the value of the dollar. Kiyosaki doesn’t trust the value of the dollar because he explains the U.S. is printing money. I think what Kiyosaki is referring to is inflation. When the U.S. prints money it causes inflation which devalues the dollar. I can see why people would suffer if they kept most of their assets in cash because as time goes on the dollar is worth less. The value of the dollar decreases as time moves on but during a crisis, there is extra stress on your already devalued dollar.
Furthermore, Kiyosaki made the point to avoid losing the value of your savings, invest in gold, silver, or special industry. I think the reason he brings gold and silver into the conversation is the fact that there is a limited supply of the material on Earth. This means that gold and silver hold their value very well so it’s better to hold on to those precious metals than cash for saving purposes. I think this a great tip for anyone who likes to save money.
Market Crashes
Kiyosaki lastly talked about why he loves market crashes. During a market crash, the values of assets drop dramatically which is when Kiyosaki looks for deals to invest in. I think this concept all comes down to your mindset. It takes the right kind of person to seek out opportunity in a not-so-good time. Yes, value is lost in a stock market crash, but future value can be made if you can take advantage of low-priced stocks. It all makes sense when you step back and look at the situation. Investing when the market is down and selling when the market is high. A market crash would provide a great opportunity to invest because prices are low.
I think another reason Kiyosaki comes out on top when the market crashes is because he prepares and takes action when prices are low. He also is not affected directly if a market crash happens because all of his assets are businesses and precious metals. Specifically, people who hold all of their assets in cash or stocks are the most affected when the market crashes. I think Kiyosaki explained this concept well so more people can understand why others may be affected more during a market crash.
Kiyosaki doesn’t rely on stocks because of market crashes like 2008.
Source: CNN Business
I think this was a great video for any new investor to watch. Kiyosaki did a great job elaborating on the concepts he covered making it easy to understand. He also gave valuable information on how to take advantage of a market crash and find investing opportunities. One thing I found interesting was the decreasing value of the dollar when someone decides to save money. I don’t think very many people know or understand this concept so I think Kiyosaki did a good job elaborating on that subject. Overall, I would recommend this video to anyone who is thinking about becoming an investor/business owner.
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