In a departure from the traditional 60/40 investment strategy of having 60% of one’s portfolio in stocks and 40% in bonds, Robert Kiyosaki suggests a different approach to portfolio allocation. Instead, he recommends allocating 75% of investments in gold, silver, and Bitcoin, and the remaining 25% in real estate or oil. Kiyosaki believes that this diversified portfolio will provide better protection during an imminent economic crash.
Kiyosaki, known for his book “Rich Dad Poor Dad,” argues that the traditional 60/40 strategy is ineffective in the current market. He claims that those who follow this approach are “the biggest losers.” Contrarily, he believes that investing in gold, silver, and Bitcoin offers a greater chance of survival in the face of a global financial crisis.
The renowned author took to social media to share his perspective, stating, “Forever and ever financial experts have promoted the idea ‘Smart Investors invest in 60/40 60% bonds 40% stocks. In 2024, 60/40 investors will be the biggest losers. Before going down with the ship, consider a shift to 75% Gold, Silver, Bitcoin 25% real estate/oil stocks. This mix may allow you to survive the greatest crash in world history.”
Kiyosaki also advocates for “Dollar Cost Averaging,” emphasizing the long-term value of accumulating assets. He shared an example of his own experience with gold, noting that a gold coin he purchased for $40 is now worth $2,000.
His recommendation to invest in gold and Bitcoin aligns with the current market trends. Bitcoin’s price is currently above $34,000, with predictions of a new bull market that could potentially drive the price to $125,000 by 2024. However, analysts advise caution and anticipate potential volatility due to upcoming events such as a Federal Reserve meeting and geopolitical developments.
What is Robert Kiyosaki’s recommended investment strategy?
Robert Kiyosaki suggests allocating 75% of investments in gold, silver, and Bitcoin, and the remaining 25% in real estate or oil. He believes that this diversified portfolio offers better protection during an economic crash.
Why does Kiyosaki recommend gold and Bitcoin over stocks?
Kiyosaki argues that the traditional 60/40 strategy of stocks and bonds is ineffective in the current market. He believes that gold and Bitcoin provide a greater chance of survival in the face of a global financial crisis.
What is Dollar Cost Averaging?
Dollar Cost Averaging is an investment strategy where an investor regularly invests a fixed amount of money over a specific period, regardless of the asset’s price. Kiyosaki advocates for this approach, emphasizing the long-term value of accumulating assets.
Robert Kiyosaki challenges the traditional 60/40 investment strategy of stocks and bonds, recommending a portfolio allocation of 75% in gold, silver, and Bitcoin, and 25% in real estate or oil. Kiyosaki believes that this diversified approach offers better protection during an imminent economic crash. He advocates for “Dollar Cost Averaging” and highlights the current value of accumulating assets such as gold and Bitcoin. Market trends support his recommendations, with Bitcoin’s price expected to rise in a potential new bull market.