'Rich Dad, Poor Dad' Author Hints 'Crash Landing' A Possibility For The Economy: 'I Hope I am Wrong Yet That Is What I Believe'

"Rich Dad, Poor Dad" author Robert Kiyosaki has once again reiterated his bullish take on assets like gold, silver and Bitcoin BTC/USD, saying they are the best hedge against corruption and incompetence.

"SOFT LANDiNG? HARD LANDING? Or CRASH LANDING? I say crash landing. I hope I am wrong yet that is what I believe. Corruption is high & leaders corrupt. Buy gokd, silver, Bitcoin. Still best insurance against corruption & incompetence," Kiyosaki said in his tweet.

Also Read: How To Invest In Gold

The author, however, did not elaborate on the specifics when he talked about corruption and incompetence.

Hard Landing: However, the questions he raised about hard landing could potentially be indicating his expectations about the economy and the Federal Reserve's policy path in the wake of high inflation. There are varied opinions on the same among investors. While a section of Wall Street strongly believes there could be rate cuts down the year, some believe the central bank is not yet done raising rates given that inflation is still way higher than its 2% target.

For instance, Johanna Chua, chief APAC economist at Citigroup Global Markets, reportedly said inflation is likely to be quite persistent and the Fed may go for two more rate hikes in coming times.

At the same time, JPMorgan Asset Management is of the view that a recession in the U.S. is a virtual certainty and the central bank is likely to cut interest rates by the third quarter as growth fizzles out.

Price Action: Indeed, as Kiyosaki points out, gold is a good inflation hedge. The commodity has made a significant rally over the last few months as high inflation made investors divert funds from risky assets to the safe haven metal. The SPDR Gold Trust GLD and the iShares Gold Trust IAU have gained over 6% since the beginning of the year. Bitcoin, too, has registered solid returns this year, gaining over 61% on a year-to-date basis, according to Benzinga Pro.

The debt ceiling impasse, which continued into the third week of May, is one major factor other than inflation that could spook Wall Street in the short term.

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