Protect Your Wealth: Kiyosaki's Investment Strategies for High Inflation

Kiyosaki recommends investing in these assets to combat high inflation.

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Key points

• Top economics and experts believe that the U.S. is likely to face a recession in the next 12 months.
• Rich Dad, Poor Dad author Robert Kiyosaki believes high inflation will "wipe out" 50% of the U.S. population.
• Kiyosaki recommends investing in gold, silver, and cryptocurrency to hedge against inflation.

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Robert Kiyosaki, the author of the best-selling book Rich Dad Poor Dad, recently gave a series of warnings regarding the U.S. economy. "When inflation goes up, we're going to wipe out 50% of the U.S. population," he told Stansberry Research earlier this month.

"America has stopped producing products, we produce bubbles," he continued, discussing his biggest concern that we now have bubbles in all sectors of the economy. He states that the real estate market, the stock market, and the bond market are bubbles. As a result, those in retirement relying on their 401(k)s may be exposed to too much risk.

"Inflation goes up and the average American doesn't have $1,000. $40% of Americans don't have $1,000. So when inflation goes up we're going to wipe out 50% of the U.S. population, and that is when revolution starts." Kiyosaki warns that high inflation is a sign of a major crisis and that a recession is on the horizon.

Is a recession coming?

Kiyosaki isn't the only one worried about a recession. JP Morgan CEO Jamie Dimon believes the risk of the U.S. economy heading into a recession is rising. The CEO of the biggest U.S. bank states that there are "storm clouds on the horizon that may disappear, they may not."

Former Treasury Secretary Larry Summers shares the same concerns. He reiterated his concern that a recession is "the most likely thing," due to the Federal Reserve's actions in aggressively combating inflation.

The Wall Street Journal's survey of economists last month put the probability of a recession in the next 12 months at 28%. This is up from 18% in January and 13% a year ago. Summers is less optimistic. He puts the chances of a recession at more than 50% and "quite possibly two-thirds or more."

How to profit from inflation

Kiyosaki has been vocal in recommending gold, silver, and Bitcoin. Precious metals can help hedge against inflation. After the Russian invasion of Ukraine, gold's value popped up by 12%. Gold prices have now settled down but are still slightly up from the beginning of the year. In comparison, the S&P 500 is down close to 20% year to date. When it comes to cryptocurrency, Kiyosaki believes the high national debt will lead to the U.S. dollar imploding and that Bitcoin, Ethereum, and Solana can help you protect yourself.

To Kiyosaki, it isn't a matter of if the country will head into a recession, but a matter of when. "The good thing about a bubble is when they burst, everything goes on sale." Kiyosaki states that during the financial crisis of 2008, he started "buying real estate at bargain prices," and now owns "over 12,000 rental units." There are big opportunities for people who are willing to be patient and buy the dip.