THE INVESTMENT APPROACH OF CALVIN TAN
Kiyosaki: 'Biggest crash in world history’ hits in October — 3 ways to protect yourself (Comments by Calvin Tan)
calvintaneng
Publish date: Sun, 03 Oct 2021, 04:40 PM
calvintaneng
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Hi Guys,
I have An Investment Approach I which I would like to all.
I have An Investment Approach I which I would like to all.
Kiyosaki: 'Biggest crash in world history’ hits in October — 3 ways to protect yourself
The looming default of Evergrande — the second largest property developer in China — continues to send nervous vibes across global markets.
And “Rich Dad Poor Dad” author Robert Kiyosaki is predicting a major crash because of it.
“HOUSE of CARDs coming down. Real estate crashing with stock market,” Kiyosaki tweeted last week. “China’s Evergrande Group cannot pay. Valuation of properties fake. Will real estate crash spread to US? Yes.”
He also told
Kitco News on Wednesday that this “is going to be the biggest crash in world history.”
The good news? Kiyosaki also provided some suggestions on how to prepare for the seemingly inevitable downturn.
He proposed investing in the following three assets — they might be worth sprinkling some of your spare change on.
Gold
This is Kiyosaki’s simplest recommendation. For centuries, gold has been the go-to safe haven asset.
It can’t be printed out of thin air like fiat money, and its value is largely unaffected by economic events around the world.
Investors often rush toward gold in times of crisis, so it makes sense to get ahead of the pack.
Case in point: In the first six months of 2020 — when the stock market went on a rollercoaster ride due to the COVID-19 pandemic — increasing demand for the yellow metal drove its price from $1,509 to $1,772 an ounce.
The most direct way to play gold is to own bullion. But that can be difficult and expensive. An easier method is to invest in large gold mining companies.
If gold prices go up, these miners will earn higher revenue and profits, which tend to translate into higher share prices.
For instance, companies like Barrick Gold, Newmont, and Freeport-McMoRan typically do well during tough times for other sectors.
And these days, you can build your own doomsday portfolio just by using digital nickels and dimes.
Silver
It's also no surprise that Kiyosaki likes silver. Just like gold, silver can be a store of value and a hedge against rising rates and inflation.
The grey metal may not seem exciting, but it can be a highly effective holding during times of uncertainty. Over the past two years, the price of silver has increased by more than 30%.
As you’d expect, rising silver prices benefit silver miners.
Some of the easiest ways to play a looming silver boom are through big miners like Wheaton Precious Metals, Pan American Silver, and Coeur Mining.
That said, silver is also widely used as an industrial metal. So a downturn in global economic activity could negatively impact silver prices.
Bitcoin
Once considered a niche asset, Bitcoin has now entered the mainstream.
You can purchase Bitcoin directly. But if you don’t like that kind of volatility, you can also invest in companies that have tied themselves to the crypto market.
Tesla, for instance, owns about 42,000 Bitcoins according to CEO Elon Musk’s Twitter account. When Bitcoin moves, Tesla shares tend to follow suit.
PayPal is another crypto play. Last October, the company launched a service in the U.S. that allowed users to buy, sell, and hold cryptocurrencies. It introduced a similar product for the U.K. in late August.
And then there’s Nvidia, which is known for its graphics processing units. The company’s products are a must-have for serious video gamers, but they’re also in high demand among cryptocurrency miners.
In its Q2 earnings call, Nvidia said that it wasn’t able to determine how much of its $3 billion in gaming revenue actually came from gamers rather than miners.
To be sure, these stocks are not cheap.
Tesla trades at $776 per share, Paypal is at $263, and Nvidia has a stock price of $205.
But you can get a piece of these Bitcoin plays using a popular stock trading app that allows you to buy fractions of shares with as much money as you are willing to spend.
The best protection?
Just like any other asset, the price of gold, silver, and Bitcoin can still tumble in a market crash.
Kiyosaki even predicted that when the stock market sinks, “it’s going to bring everything down with it.”
If you want an asset that has little correlation with the ups and downs of the stock market or real estate, there is one more to consider — U.S. farmland.
Even if the next crash ends up being the biggest in world history, people will still need to eat.
And over the years, agriculture has been shown to offer higher risk-adjusted returns than both stocks and real estate.
New platforms allow you to invest in U.S. farmland by taking a stake in a farm of your choice.
You’ll earn cash income from the leasing fees and crop sales. And of course, you’ll benefit from any long-term appreciation on top of that.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Calvin comments:
Crash or not we have yet to see
These are 4 classes of investments for safety
1. GOLD
2. SILVER
3. BITCOIN / ETHEREUM
4. US FARMLANDS
IN MALAYSIA THESE OIL PALM ESTATES ALL HAVE HUGE PALM OIL LANDS
FGV
TSH RESOURCES
TAANN
SOP
THPLANT
BPLANT
JTIASA
Warm Regards
Calvin
Please buy or sell after doing your own due diigence or consult your remisier/fund manager
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Discussions
Be the first to like this. Showing 36 of 36 comments
HOW TO ESCAPE A FINANCIAL TSUNAMI by Calvin Tan (Reposted Article)
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2021-10-04-story-h1591876065-HOW_TO_ESCAPE_A_FINANCIAL_TSUNAMI_by_Calvin_Tan_Reposted_Article.jsp
2021-10-04 08:04
Please no be a doom day prophet here lah.
Be positive when others are negative !
2021-10-04 08:14
ahbah Please no be a doom day prophet here lah.
Be positive when others are negative !
04/10/2021 8:14 AM
Ahbah Ahbah
You better be careful don't simply blindly chase stocks now
Later no more nasi lemak for you
Then you go line up for free food?
See
https://www.youtube.com/watch?v=B5fdvNMtaso
2021-10-04 08:18
Dulu got food kitchen,
Sikalang, just gantong white flag, got nasi lemak delivered free to our
door step !!!
2021-10-04 08:24
Hahaha
White flag?
After losing all in pump and dump syndicates stocks then surrender with white flag
2021-10-04 08:50
Calvin no see crystal ball
Calvin sees the stock market is now being turned into a gambling casino
2021-10-04 09:06
Ahbah crying ?
Please better be safe than sorry and laugh instead of cry ok
2021-10-04 09:07
Save from bankruptcy ?
Exactly !!!
Those wise ones who take heed will be saved from bankruptcy later
Heedless ones will suffer losses later
2021-10-04 09:09
@calvintaneng, despite the many stock market crash since 40 years ago, quality stocks like Microsoft, Apple (US listed) or even in Msia (Maybank, public bank, TM, TNB) still around
Buy good quality stocks should be the key for successful investment without any worries stock market crash
2021-10-04 10:57
newbie8080
I remember my Remisier friend short maybank from Rm20.00 to Rm2.50 during the Asian Financial Crisis
public bank fell to only 80 sen
Nestle fell to only Rm11.80
of course they survived
but those who paid high prices with margin all their shares were forced sold at bottom prices
2021-10-04 11:22
Kiosaki missed so many predictions.
He only made one right prediction: housing boom in the US in 2005. Later busted in 2008.
2021-10-04 11:24
those r the history and would not happen again .
go and buy APPLE, TESLA, AMAZON, MICROSOFT....101% guarantee win...only one way up!!!!..
2021-10-04 11:24
Bad news out from China
Evergrande about 2% of China GDP is now suspended for failing to honour it's bond payment
The most secured investment is bond just like the most important part of the human body is the back bone and the most important support of the building is the main pillar
Now China Govt MUST STEP IN TO SAVE EVERGRANDE OR ELSE THE CONSEQUENCES WILL BE VERY BAD
2021-10-04 11:26
He always asked governments to cancel pension fund (EPF) because pension fund makes people lazy and unproductive.
2021-10-04 11:26
As for Evangrande, the biggest fear is still how much foreigners are into the bond program. How big the hole is.
If China doesn't save Evergrande, stock market will wobble for a few days. GDP of China will be scaled down and US tapering will be postponed. Good for growth stocks.
2021-10-04 11:29
Evergrande is even worse than LEHMAN brothers ......
CHINA will collapse badly.....at 15 years backwards...the economy will be in the recession for long long period of time...riots and kiosk in china due to poverty and people r dying....the hype of the CHINA rise will be disappeared and vanished..china will need another 30 years to build and the cycle will continue....
2021-10-04 15:02
Evergrande is selling off Rm5 billions assets as
a stop gap measure to forestall default
More will come later
This Evergrande is only the tip of the iceberg
The colossal debt bomb hidden in all the other companies and banks will surface later as well
See if China will follow USA example of propping up it's economic system by artificial life support system of printing Fiat money
2021-10-04 15:04
Huawei will build back better.
Adam Khoo from Singapore did a deep down analysis of Evergrande'c current situation and he asked his students to buy stocks (not Evergrande's stock) on the dip.
You can check his video in Youtube.
2021-10-04 15:10
singaporean r smart conmen and sweet talker like American....cant trust..trust your own analysis....wait for the nuclear to burst...it's timing now which is getting closer and closer...
2021-10-04 15:21
https://www.bnnbloomberg.ca/china-steps-up-efforts-to-ring-fence-evergrande-not-to-save-it-1.1661169
Bloomberg) -- As China Evergrande Group edges closer to a massive restructuring, Beijing has stepped up efforts to limit the fallout, signaling it’s willing to prop up healthy developers, homeowners and the real estate market at the expense of global bondholders. In the last week alone, Chinese authorities have dispatched top financial regulators to nudge the country’s massive banks to ease credit for homebuyers and support the property sector. They also bought out part of Evergrande’s stake in a struggling bank to limit contagion. The central bank meanwhile pumped 460 billion yuan ($71 billion) into the system over a five-day stretch to ease liquidity. The moves underscore that China will do everything it can to ring-fence Evergrande, while showing little interest in a direct bailout of the developer that has roiled global markets for weeks. That doesn’t bode well for bondholders -- both onshore and abroad -- looking for some kind of rescue from the Chinese government. “The first obligation is going to make sure that homeowners who bought those homes take delivery and are made whole,” said Marathon Asset Management Chief Executive Officer Bruce Richards, who started buying Evergrande debt last week. “At the very end of the pecking order are offshore bondholders.” For China, the risk of contagion far outweighs any potential damage from an Evergrande collapse on its own. Though Evergrande is one of the largest developers in China, it accounts for just 4% of sales in the country. A run on property firms in the wake of an Evergrande failure threatens to destabilize an industry that accounts for 29% of China’s economy, according to new research from Harvard University economist Ken Rogoff.
2021-10-04 17:11
noob question aside of evergrande issue now and us interest adjustment expectation in 2022, how do you think the US Gov's debt ceiling will hurt the market?
2021-10-04 17:26
Regarding US Interest rate & debt ceiling
Listen to Dr Marc Faber
https://marcfabersblog.blogspot.com/
2021-10-04 19:10
Inflation Time Bomb
By Marc Faber
https://marcfabersblog.blogspot.com/
2021-10-04 20:21
Peter Cai, a research fellow with the Lowy Institute, said the Chinese government had learned from its management of other recent big collapses including aviation and tourism group HNA.
“One missing piece is that the Chinese government is willing to let Evergrande go down,” he said. “They are more and more experienced and emboldened to let really large and over-leveraged companies go under.”
He said while Evergrande’s liabilities were enormous the situation was different to the collapse of Lehman Brothers, where sub-prime mortgages had been packaged up and sold across the entire economy.
“Here we are talking about a highly leveraged Chinese property development firm,” he said. “Despite its size, I think it’s quite unlikely to cause the kind of systematic meltdown we experienced in 2008.”
2021-10-05 10:23
every year he says the same thing, crash happening soon, buy gold... and buy his book.
what is new?
2021-10-05 11:57
Right thing to do loh!
Let evergrande collapse & buy the piece of business cheaper loh!
After that only think whether should rescue the company loh!
Posted by Serious > Oct 5, 2021 10:23 AM | Report Abuse
Peter Cai, a research fellow with the Lowy Institute, said the Chinese government had learned from its management of other recent big collapses including aviation and tourism group HNA.
“One missing piece is that the Chinese government is willing to let Evergrande go down,” he said. “They are more and more experienced and emboldened to let really large and over-leveraged companies go under.”
He said while Evergrande’s liabilities were enormous the situation was different to the collapse of Lehman Brothers, where sub-prime mortgages had been packaged up and sold across the entire economy.
“Here we are talking about a highly leveraged Chinese property development firm,” he said. “Despite its size, I think it’s quite unlikely to cause the kind of systematic meltdown we experienced in 2008.”
2021-10-05 12:14
Bursa Technology index falls the most after Nasdaq ends sharply lower
https://www.theedgemarkets.com/article/bursa-technology-index-falls-most-after-nasdaq-ends-sharply-lower
2021-10-05 13:52
AFTER EVERGRANDE ANOTHER DEVELOPER GOES INTO BOND PAYMENT DEFAULT
https://www.cnbc.com/2021/10/05/china-property-default-risk-for-fantasia-sinic-amid-evergrande-crisis.html
2021-10-05 14:07
Shalala
Like this
US farm lands produce these two major crops - Corn and Soybean
Now Us is pivoting into biodisel from fossil fuel
And both corn and soybean are used as biodisel
Since biodisel demand is good prices of corn and soybean are up and people are bidding up the prices of farm lands. Soybean is also a good export to China and prices are high
Since over here palm oil is also used as biodisel and food
And with high cpo prices land ownership becomes a good proposition as well to go up in prices
2021-10-05 18:21
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calvintaneng
THE IMPORTANCE OF DIVERSIFICATION (Calvin Tan) This is a 3rd posting to warn about Black Swan event
https://www.eaglevisioninvest.com/the-importance-of-diversification-calvin-tan-this-is-a-3rd-posting-to-warn-about-black-swan-event/
3 Main Points in the above article
1) One 911 Event can Wipe of Entire Life's work when Twin Towers New York Collapsed
CEO turns into taxi driver. Never put all investments into One Basket
2) High Steel Prices no use if Contractors cannot pay. Petronas Twin Towers stopped work during Asian Financial Crisis & ran away
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The only safety that went up when everything else crashed
2021-10-03 16:47