Robert Kiyosaki has predicted that stock prices will crash due to rising interest rates. The “Rich Dad Poor Dad” author posted on Thursday that ” increasing interest rates will collapse equities, bonds, estate, & US dollar,” saying that he believes the large financial sector to crash too.
On Wednesday, the Federal Reserve increased its benchmark rate by twenty-five basis points to above 4.75 percent, up from around 0% a year earlier. Since increased rates boost saving over consumption and increase borrowing rates, the US central bank aims to reduce inflation. Yet, they also lower demand, which drags stock prices down and raises the possibility of a collapse.
Kiyosaki has criticized the Fed for raising rates and sending money into the economy to avoid a collapse. He has recommended investors purchase rare metals and cryptocurrencies as protection against price increases and a falling US dollar.
In February, he posted, “Saving funds & investing in a highly spread range of stocks, bonds, mutual funds & ETFs are dangerous advice. Even though rates will fluctuate, I still think gold, silver, and bitcoin are the best investments during difficult times.”
