'Major crash to come': Robert Kiyosaki warns that a key economic signal is flashing bright red. Here are the 3 assets he likes for shock safety

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'Major crash to come': Robert Kiyosaki warns that a key economic signal is flashing bright red. Here are the 3 assets he likes for shock safety
'Major crash to come': Robert Kiyosaki warns that a key economic signal is flashing bright red. Here are the 3 assets he likes for shock safety

Soaring inflation, rising interest rates, and a slowing U.S. housing market continue to send nervous vibes across the stock market.

But Rich Dad Poor Dad author Robert Kiyosaki says that the "real problem" is what's happening in the bond market. On Friday, government bond prices soared around the world as soft economic data out of the U.S. and Europe fueled worries over slowing global growth. Generally speaking, investors view government bonds as safe havens during periods of economic stress.

In other words, a climbing bond market usually means bad news for the economy.

“Bond market 40 times larger than stock market. Please pay attention to bonds, not stocks,” Kiyosaki tweeted on Friday. “Major crash to come. Take care.”

The good news? Kiyosaki also provided insight on how he's preparing for the seemingly inevitable downturn.

"I am buying more gold, silver now, and waiting for Bitcoin to go lower."

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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.

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.

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 slightly.

As you’d expect, rising silver prices benefit silver miners.

Some of the easiest ways to play silver is 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.