Author Of “Rich Dad, Poor Dad” Wary Of Trading Stocks


Robert Kiyosaki, personal finance author, is warning investors to stay clear of stocks.

Kiyosaki is known for writing the bestseller, “Rich Dad, Poor Dad.” Currently, he is wary of ETFs, mutual funds and stocks. In fact, he believes that the next stock market crash is sooner than we expect.

"Well, if you don't believe it, look at what happened in 2008 when the subprime market came down," Kiyosaki said. "Trillions of dollars were lost and Wall Street bankers were paid billions in bonuses."

Lower interest rates due to cuts from the Federal Reserve have given corporations the ability to saddle on debt that is then used to buy back stocks. Meanwhile, the lower rates cause mom and pop investors to earn little money on interest.

"There's a disconnect between share price and fundamentals of the company," Kiyosaki said. "And that's because the CEOs are looting the companies — loading them with debt to buy their stocks back."

The quick access to capital is what Kiyosaki is worried about. Additionally, stock prices are inflated and are not taking into account how the company itself is being run. This gap between share value and actual value cannot sustainably exist forever.

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Comments (1)
No. 1-1

Mom and pop business have always competed for profits with big corporations. That's nothing new and as always the mom and pop business struggle but dig in and make it work. It's not a disconnect...theres no way to rationalize the difference between a mom and pop business and a multi million dollar corporation.

Economics, Finance and Investing