Financial author and investor Robert Kiyosaki, known for his best-selling book “Rich Dad Poor Dad,” has warned about what he considers the “biggest lie” in the financial industry.
In an X post on May 25, Kiyosaki claimed that the lie emanates from financial planners who deceive “gullible, mom and pop investors” by promoting the safety of bonds.
Consequently, Kiyosaki warned investors, including those deemed sophisticated, that they risk significant losses when AAA bonds—bonds with the highest credit rating—plummet as the commercial real estate market falters.
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Kiyosaki also cautioned that the current state of the office real estate market could lead to a catastrophic crash, leaving investors vulnerable to significant losses. He predicted that this inability to meet financial obligations would precipitate the crash of AAA bonds.
“BIGGEST LIE financial planners tell gullible, mom and pop investors: The lie is: “Bonds are safe.” Millions of even so-called “sophisticated” investors will take losses when so-called AAA bonds crash,” he said.
Such a downturn, he suggested, would disproportionately impact investors who are considered sophisticated but may have been lulled into a false sense of security by the high credit ratings of these bonds.
Interestingly, the warning comes when the U.S. Treasury bonds have deviated from a 40-year uptrend, implying possible economic vulnerabilities.
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From his perspective on the financial landscape, Kiyosaki recommended that investors pivot to “safer real assets.” He specifically pointed to gold, silver, and Bitcoin (BTC) as preferable alternatives.
“Best get into safer real assets such as gold, silver, and. Bitcoin before their prices explode,” the investor added.
Indeed, Kiyosaki’s latest perspective on economic health aligns with his long-standing warnings about a possible market crash. As reported by Finbold in early May, the financial educator cautioned that a crash had already begun and is likely to worsen.
Notably, Kiyosaki has blamed some U.S. government policies for the situation. He has specifically accused the Federal Reserve of doing little to tame inflation while warning that the levels of U.S. debt could have catastrophic consequences.
He maintains that the U.S. is “bankrupt” and predicts that nearly every asset class and type, including stocks, bonds, and real estate, will crash.
In the meantime, the investor has emphasized that gold, silver, and Bitcoin are the main assets to cushion from any crash.
