Robert Kiyosaki believes that the Evergrande debt crisis will cause US stocks to crash and real estate to fall.
According to the author of "Rich Dad Poor Dad", unprepared investors will suffer devastating consequences.
Kiyosaki advised investors to invest in gold, silver and bitcoin to weather downturns.
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Robert Kiyosaki, author of "Rich Dad Poor Dad", expects that the Evergrande debt crisis will hammer US stocks & real estate. This will result in bargains for smart investors but a financial nightmare to the unprepared and reckless.
Kiyosaki tweeted this week, "HOUSE OF CARDS falling." He continued, saying that real estate is collapsing with the stock market. He also said that Evergrande doesn't have the ability to repay its approximately $300 billion in outstanding loans and that the Chinese developer's property portfolio seems overvalued.
"Will the real estate crash spread to the US?" The personal-finance expert tweeted "Yes." Smart investors will find great stock and real-estate opportunities. Disaster for foolish investors."
Evergrande, one the largest developers in the world, borrowed large amounts to finance its recent rapid growth. It could fail to repay them and go bankrupt, which could shake the Chinese economy and cause shockwaves on global markets.
Jim Chanos, a short seller, warned this week that China's real estate market is in "stilts" and that Evergrande could collapse even more than Lehman Brothers' demise. This warning came after the global financial crisis.
Kiyosaki (founder of Rich Global, Rich Dad Company) has predicted a market decline for quite some time.
"Biggest bubble ever in world history growing bigger. He tweeted, "Biggest crash in history coming," in June.
Investors are advised by the author to purchase gold, silver, or bitcoin before the crash. He stated that precious metals and cryptocurrencies are more liquid than real property, have a greater store of value than dollars, and pose less risk to counterparties.
Kiyosaki also highlighted the buying opportunities that arise during sell-offs. In June, he tweeted that "The best time for getting rich is during a crash."