Breakout

America Is on Sale: Author Kiyosaki

Breakout

Except for a handful of hedge funds and perhaps some gold coin dealers, few investors are able or willing to stand up during a recession and proclaim that they're on a hot streak.

"I hate to say it but it has been the best three years of my life," says best-selling author and financial literacy advocate Robert Kiyosaki. "I have never made so much money - America is on sale."

Borrowing the open from Charles Dickens' A Tale of Two Cities, Kiyosaki uses the phrase, "it was the best of times, it was the worst of times," to illustrate his belief that opportunity always exists, even when the typical barometers of growth and economic vitality suggest otherwise. (For the record, the line that follows is also telling: "It was the age of wisdom, it was the age of foolishness.")

This self-proclaimed "cash-flow guy" prefers investments that "throw money in my pocket every month." He's focused on real estate, oil, gold, silver, and natural gas. Given his belief that "commercial real estate is done and individual real estate is a mess," Kiyosaki says 300-800 unit apartment complexes are "the hottest part of the market."

When asked if dividend paying blue chip stocks meet his criteria for value and cash flow, the native Hawaiian says no, and refers to a cyclical prediction from a previous book that has called for a bottom in 2016. In the meantime, he has no interest in owning shares of Exxon Mobil (XOM) or BP (BP). Instead he prefers "buy private oil drilling projects, where the entrepreneur and I are good friends."

Clearly, a man of his means, who has access to and writes books with Donald Trump, will have a different array of investment choices and opportunities available to him than the average Joe. For us mortals, his advice is 3-fold: Educate yourself, be smarter, and seek cash flow.

Kiyosaki has been a gold bug since his time in Vietnam 40 years ago. "If I have cash and I can't figure a way to put it into real estate or my business, I hold it in gold and silver," he says.

For those holding out hope that Ben Bernanke and the Fed will inject more dollars into the monetary system and markets, Kiyosaki says you've got it all wrong. "The Fed just printed like $4trillion dolllars in three years," he says. "That wipes out the purchasing power of your money and your labor. So I think the Fed and the Treasury have basically ripped off the American worker."

If he's right, perhaps it's time for a policy re-branding and would suggest, "Quantitative Teasing."

Rates

View Comments