U.S. consumer prices skyrocketed 8.6% in May from just a year ago, marking the swiftest upsurge since December 1981. That could give the Fed more reason to continue raising interest rates — something that’s already casting a shadow over the stock market.
According to a recent article published in Yahoo Finance, it’s a vicious cycle criticized by many investing veterans. And Rich Dad, Poor Dad author Robert Kiyosaki is one of the latest experts to sound the alarm.
“When inflation goes up, we’re going to wipe out 50% of the U.S. population,” he told Stansberry Research earlier this year.
“America has stopped producing products, we produce bubbles,” he says, adding that we now have bubbles in the real estate market, the stock market, and the bond market.
Kiyosaki says, “The average American doesn’t have 1,000 bucks.”
Given his gloomy outlook, it’s no surprise that Kiyosaki is a fan of safe-haven assets like gold and silver. Precious metals can’t be printed out of thin air like fiat money, and they’ve been helping investors protect purchasing power for centuries.
The price of gold is up about 8% year to date. Russia’s invasion of Ukraine has given investors a new reason to check out gold and silver.
Bubbles eventually pop. When they do, many people see their wealth take a substantial hit. But significant declines also create opportunities for those willing to buy the dip.
“The good thing about a bubble is when they burst, everything goes on sale,” Kiyosaki says.
