Last weekend the author of Rich Dad, Poor Dad, Robot Kiyosaki, predicted that a crash is coming.
With 2 million followers, his tweet gained attention quickly from concerned investors all over the world.
Unfortunately, this is not the first time he has predicted a crash in the last decade. This chart shows all his incorrect calls and how the market has performed over time:
Anyone that has sold out of stocks based on Kiyosaki’s predictions is way worse than someone who did nothing but hold through it all.
I don’t mean to pick on Kiyosaki because many others have made equally wrong predictions in the past. But he has been doing it for a long time and for some reason people still give him attention.
Like the old saying goes “even a broken clock is right twice a day”. If you say the market is going to crash for a long enough period, you’ll likely be right at some point.
It’s no secret that the stock market drops significantly every 5-7 years on average. Bear markets are part of investing for the long term.
So despite being wrong so many times, how does Kiyosaki get so much attention?
The reason is most people just want answers. The more confidently you provide that answer the better. As an investor, it’s important to be cautious who you are getting your answers from.
Sources and Disclaimers:
Robert Kiyosaki tweets can be found @theRealKiyosaki on Twitter
Chart from @ChicagoAdvisor. Data from YCharts 04/07/2011-08/28/2022
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