Hi All,
I just got done reading Kiyosaki’s latest piece in yahoo finance. Kiyosaki is one of those personal finance gurus I go back and forth on. Some of his advice is good, sometimes it stinks. Right now, in the guys latest column, I think he’s dispensing bad advice. The gist of his latest is that people should be buying silver because Bernake and the politicians can’t handle the economy.
After reading it, I wanted to give Kiyosaki a big slap.
First of all, relative to the great depression and 80s stagflation, todays economic conditions aren’t that bad. So, I think Kiyosak is being overly pessimistic about the economy. Second, his thinking about how to react to economic conditions seems flawed. Kiyosaki recommends buying silver. He is correct that prices are currently high – 20.79 per oz. as of today. But, why buy something that’s expensive? Why not get a quality asset that’s inexpensive? Silver is up, yes that correct. But the whole point of making money is buying low and selling high. Not buying high – as Kiyosaki is advocating. Instead of getting silver, the proper response to current economic conditions would seem to be purchasing shares in a quality company thats current undervalued.
I don’t know why his latest column is so bad. Maybe his rich dad didn’t give him enough love as a child…perhaps it was his poor dad. At any rate, ignore his latest. Its trash.
Best,
James
Folk,
This posting was written before the financial crisis in 2009/2010 and silver is at 31.47. I stand corrected on both accounts.