Remember Kiyosaki hates the stock market...

Robert Kiyosaki has to be one of the dumbest people on the education circuit.JPG

Except when he wants to sell you overpriced stock market training seminars from a guy who spent his career not running a hedge fund, not manning a family office, not catering to the ultra wealthy, but on the seminar stage.
It's not so much that I object to overpriced seminars or even more overpriced mentoring, although those things can be pretty damaging to a wallet. Robert's crappy nebulous advice could be far more ruinous than overpriced training, and yeah that grinds me more.

What really gets me is there is no compelling evidence this guy has any chops to back his claims. I get that he made money selling a ton of books about a Dad that never existed, but for a man that likes to brag as much as he where's the proof of him being a skilled trader? Did he not just say he is not a fan of paper assets?


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At Rich Dad, we are always telling people they need investments they can control.

Relying on the government or your employer is never safe or secure.

Neither is relying on the markets.

Markets have cycles and patterns but they are also victim to the whims of a lot of different forces.

This week China was the force changing the market.

The leaders in China needed to do something to bolster their economy. They chose to fire the first volley in a monetary conflict by letting the value of the yuan drop.

What does this do?

It makes their products much cheaper for other countries to import. It also makes non-Chinese products much more expensive to the Chinese people.

This triggers a trade conflict.

Many are predicting the U.S. will devalue the dollar to help their products sell in an attempt to stave off a huge unemployment surge.

Historically this has created a domino effect forcing countries to devalue their money. It becomes a dash to see who can devalue their money fastest.

This will cause huge unemployment swings, manufacturing swings, and national chaos.

The scariest part?
It will be up to the Fed and the Chinese government to try to repair. That’s like putting your homeowner's claim in the hands of the guy who burnt your house down.

Oddly enough, this volatile landscape highlights one of the greatest things about stock trading: it is highly liquid and highly agile.

A savvy investor can use the stock market to capitalize on just about anything going on anywhere in the world.

Because stocks are so liquid (easy to obtain and sell) and agile (they can move in any direction immediately) an educated investor can get into or out of any deal within seconds. This flexibility will allow the educated investor to make changes as fast as the chaotic markets change.

One more great thing about stocks.

Just about anyone can get in the stock market. It is very scalable. You do not need a lot of money to get in. But you do need knowledge.

With knowledge you can profit greatly from a volatile market. Without knowledge you will be the market’s victim. As Warren Buffett said,

“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”

Remember, knowledge is what makes a good investor, and only a good investor can profit from the world’s foolishness.

To making life better,

Robert Kiyosaki

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You’ve probably heard me say that even the best investment will be bad if the investor is bad. In other words, your investments can only be as good as the investor – you.

You’ve also heard it said that investing is risky. If you are uneducated then I agree, but if you are financially educated then you know how to mitigate risk.

If you are to be a good investor, regardless of what you invest in, you need to understand insurance. Investing is far less risky when you have insurance.

My Rich Dad Advisor on stocks, Andy Tanner, uses options as a form of insurance. In Andy’s new eBook, Rat Race Escape Plan, he says:

“The most commonly-used strategy for [educated stock investors] is to use the stock market in conjunction with the options market. Stocks become their main investment, while options are like the insurance for that investment. It’s very similar to real estate – you acquire the property as the main investment, and then you get insurance to insulate it. That’s why top stock market investors know how to do the same thing with stocks and options. It’s not difficult at all, but it takes a basic understanding of how it works and how to use it for yourself.


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In the last few weeks we’ve seen the stock market soar to its highest point in history then plummet to its worst week in over four years.

You know what? I don’t care.

It’s not because I’m not in the stock market. It’s because my knowledge protects me. I know how to make money regardless of what the market is doing.

I do not worry about markets, what China’s government is doing or what The Fed is doing. I pay attention and act on my knowledge and experience. Once you learn how to apply the Rich Dad philosophy to the stock market, then you’ll have learned a great vehicle to wealth.

When I was first starting to invest, I used stocks to help me grow my wealth. Why did I use stocks? Stocks allow anyone to invest. Stocks gave me the ability to scale.

As Andy Tanner, my Rich Dad Advisor on stocks, says, “There is a common misconception that you need a lot of money before you can begin to invest. Fortunately, investing in stocks allows almost anyone to begin their investing sooner rather than later."

Stocks are the easiest investment vehicles to get into. The great thing is that you can own exactly the same stocks as prolific investors like Warren Buffett. The difference is that, as a new investor, you’ll probably acquire a smaller number of shares than Buffett. That is scalability.

A company you want to invest in may be a multi-billion dollar enterprise, but you may be able to get a single share of its stock for just $25. Again, scalability.

The cost effectiveness of stock allows you to scale up into your investing as you gain the means to go bigger. For the average person, this is a faster way to invest than saving up for decades to acquire a franchise or some other business.

Andy says, “Almost anyone can quickly place an asset on their financial statement with stocks. In fact, acquiring an asset with stocks can be done faster than any other asset class.”

If you are looking for a way to invest without setting aside a ton of money first, then I recommend you read Andy’s new eBook.

Robert Kiyosaki