- Robert Kiyosaki expects the Evergrande debt crunch to cause US stocks and real estate to crash.
- The “Rich Dad Poor Dad” author predicts the fallout will be devastating for unprepared investors.
- Kiyosaki has advised investors to buy gold, silver, and bitcoin to weather the downturn.
- See more stories on Insider’s business page.
“Rich Dad Poor Dad” author Robert Kiyosaki expects the Evergrande debt crisis to hammer US stocks and real estate, resulting in bargains for shrewd investors but a financial nightmare for the reckless and unprepared.
“HOUSE of CARDS coming down,” Kiyosaki tweeted this week. “Real estate crashing with stock market,” he continued, adding that he doesn’t believe Evergrande can repay its roughly $300 billion of outstanding loans, and the Chinese developer’s property portfolio looks overvalued to him.
“Will real estate crash spread to US? Yes,” the personal-finance guru tweeted. “Great stock and real estate opportunities coming for smart investors. Disaster for foolish investors.”
Evergrande, one of the world’s largest developers, took out massive loans to finance its rapid expansion in recent years. If it fails to pay them and goes bankrupt, its collapse could rattle the Chinese economy and generate shockwaves across global markets.
Short seller Jim Chanos warned this week that the Chinese real estate market is on “stilts,” and cautioned that Evergrande’s implosion could be much worse than the downfall of Lehman Brothers, which helped spark the global financial crisis.
Kiyosaki, the founder of Rich Global and Rich Dad Company, has been predicting a painful market downturn for a while.
“Biggest bubble in world history getting bigger. Biggest crash in world history coming,” he tweeted in June.
The author has repeatedly advised investors to buy gold, silver, and bitcoin before the crash. Precious metals and cryptocurrencies are more liquid than real estate, serve as a better store of value than dollars being eroded by monetary stimulus, and carry less counterparty risk, he said.
Kiyosaki has also underscored the buying opportunities that emerge during sell-offs. “The best time to get rich is during a crash,” he tweeted in June.