"I Love Crashes" Robert Kiyosaki: The 2024 Crash Will Make You Rich Only If You Own This Cheap Asset

Summary

In this video, Robert Kiyosaki, known for thriving during economic downturns, predicts an upcoming market crash and presents it as a golden opportunity for those who are prepared. Drawing from past events like the 2008 financial crisis, Kiyosaki explains how crashes can make the rich richer, especially for those who understand market cycles and invest wisely. He urges viewers to focus on assets like silver, which he sees as undervalued, and stresses the importance of being an entrepreneur rather than following conventional financial advice. Kiyosaki's message: Prepare now, and you could make millions when the crash arrives.

Takeaways

• 😀 Kiyosaki believes a recession is inevitable, but a depression can offer opportunities for those prepared to act.
• 😀 While market crashes cause widespread fear, they can present lucrative opportunities for those who know how to navigate them.
• 😀 Kiyosaki made billions after the 2008 financial crash by buying undervalued assets when others were panicking.
• 😀 The stock market has always experienced cycles of highs and lows, with previous crashes, like the dot-com bubble and 2008 housing crash, creating opportunities for savvy investors.
• 😀 The Federal Reserve’s actions, like lowering interest rates and quantitative easing, can help prevent economic collapse, but they come with long-term risks, like inflation.
• 😀 Kiyosaki advises against relying solely on traditional investments like stocks, bonds, and mutual funds, encouraging a more entrepreneurial approach.
• 😀 During a market crash, the stock prices of strong companies may temporarily plummet, creating opportunities to buy at a fraction of their true value.
• 😀 Kiyosaki believes in investing in real assets like real estate, gold, and silver rather than relying on traditional financial tools.
• 😀 Silver is a key investment opportunity in today’s market due to its undervaluation and essential role in future technologies like green energy and electric vehicles.
• 😀 Crashes are a natural part of the economic cycle, and those who are prepared with cash on hand, knowledge, and a strategic mindset can build wealth while others are panicking.

Q & A

What is the difference between a recession and a depression according to Robert Kiyosaki?

A recession is defined as two consecutive quarters of declining growth, while a depression refers to suboptimal growth, where the economy is operating below its potential, such as a GDP of 2% instead of the expected 4%.

Why does Robert Kiyosaki view economic crashes as opportunities?

Kiyosaki sees crashes as opportunities because they allow investors to buy assets at significantly lower prices. He made billions after the 2008 financial crash by purchasing undervalued assets when others were too scared to invest.

How did the dot-com bubble of the late 1990s lead to a market crash?

The dot-com bubble occurred because investors overvalued internet-based companies that lacked profits, simply because they had 'dot-com' in their names. This resulted in a market frenzy, but when the bubble burst in March 2000, many of these companies became worthless, leading to massive losses.

What role did the Federal Reserve play during the 2008 financial crisis?

The Federal Reserve played a critical role by lowering interest rates to stimulate economic growth and implementing quantitative easing, which involved printing money to buy government bonds and injecting liquidity into the financial system to prevent a deeper recession.

Why does Kiyosaki believe that saving money is not a good strategy in today's economy?

Kiyosaki argues that saving money is ineffective because of practices like quantitative easing, which result in inflation and devalue currency. He believes that savers will lose purchasing power as a result of the government printing more money.

What investment strategy does Robert Kiyosaki recommend instead of traditional savings or stock market investing?

Kiyosaki recommends becoming an entrepreneur and investing in tangible assets such as gold, silver, real estate, and businesses. He believes these investments offer better returns compared to saving money or investing in stocks, bonds, and mutual funds.

How did Robert Kiyosaki make profits during the 2008 financial crisis?

Kiyosaki made profits during the 2008 crisis by purchasing undervalued assets, particularly stocks of fundamentally strong companies like banks, which had dropped in value due to widespread panic. He understood that these companies would eventually recover.

What is Kiyosaki's opinion on silver as an investment?

Kiyosaki believes that silver is one of the best investments today because it is undervalued, with its price being about 50% lower than its all-time high. He also sees silver as crucial for future technologies, particularly in the green energy sector, which should drive up demand.

Why does Kiyosaki argue that silver is 'real money' and fiat currencies are 'fake money'?

Kiyosaki views silver as 'real money' because it has maintained its value over centuries, while he considers fiat currencies like the dollar, yen, and peso as 'fake money' due to their tendency to lose value over time due to inflation and the overprinting of currency.

What advice does Robert Kiyosaki give to those who want to become wealthy during a market crash?

Kiyosaki advises people to be prepared to take advantage of opportunities during a market crash by having cash on hand to buy discounted assets, investing in commodities like silver, and not panicking when others are fearful. He emphasizes the importance of being an entrepreneur rather than an employee.