Robert Kiyosaki, the famed American author of best-selling books on personal finance and the author of ‘Rich Dad, Poor Dad,’ has donned a weary look and uttered a message of dire warning: “The Robots are coming!” He argues that stocks, bonds, and real estate in U.S. are on an “everything bubble”, and they were only good for the last 10 years, and the next 10 years would be negative. Kiyosaki is of the opinion that investors ought to hedge the risk that an economic downturn might cause by buying gold, silver, and Bitcoin (BTC).

Robert Kiyosaki warns of potential market downturn

While Robert Kiyosaki signaled the carpet beneath the investor’s feet, Reuters historical data proffered that the possibilities of the stock market bubble may be exaggerated. Only during the post-World War II period, before the start of the new millennium, can one find the only significant bubble burst, which was the famous dot-com crash.

In the 2000s, this situation was witnessed in the internet boom, the implosion of which brought severe panic. Business media maintains that current corporate balance sheets are strong for now, and foreign markets especially clearly demonstrate this through their positive view of the stocks. Nevertheless, SocGen’s Albert Edwards has been pointing to the so-called AI stock valuations, especially the case with those driven by the so-called AI hysteria, which, according to him, might be a potential risk.

Bitcoin move in opposite direction with the S&P 500 index

In the second quarter of the year 2022, the Fed began hiking interest rates to try to curb inflation. Following the move by the Fed, Bitcoin’s price and that of US stocks dropped, leaving people wondering if it could actually be a good hedge. 

Jurrien Timmer, an associate director of global macro at Fidelity Investments, indicated that Bitcoin now manifests a negative correlation with the S&P 500, which suggests its possible role in the spectrum of more promising instruments for portfolio diversification in the year 2024.

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