In a significant move, the Famous writer Robert Kiyosaki, known for his financial book ‘Rich Dad, Poor Dad, ‘ recently tweeted on the social media platform X. He said U.S. stocks, bonds, Bitcoin, and real estate would crash soon.
The Famous writer has advised his followers to safeguard themselves against this potential crash by investing in precious metals such as gold and silver, as well as Bitcoin, the first digital currency.
Many investors worry about a stock market bubble forming. But history shows this fear may not be real. Reuters notes that after World War II, only one bubble burst in the 2000s dot-com boom. Then, internet firms got huge valuations, creating a frenzy that ended in a big bear market drop.
However, the business media outlet has also observed robust corporate balance sheets, suggesting that the “everything bubble” alarms may be unfounded fear-mongering.
Bitcoin Role In Diversification
Nevertheless, Albert Edwards from SocGen recently expressed that certain stocks could display indications of a market bubble. He further contended that the enthusiasm surrounding artificial intelligence might be spiraling out of control.
In 2022, the price of Bitcoin plummeted alongside U.S. stocks as the Federal Reserve hurried to raise interest rates to rein in rampant inflation. It led many critics to question Bitcoin’s effectiveness as a diversification asset. However, Bitcoin may present a more enticing option for portfolio diversification in 2024.
Meanwhile, Jurrien Timmer, the director of global macro at the Boston-based financial behemoth Fidelity Investments, recently highlighted Bitcoin’s negative correlation with the benchmark S&P 500 index.
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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risk.
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