Sometime last year, “Rich Dad Poor Dad” author Robert Kiyosaki told his millions of followers to expect a crash and to dump their investments and move to cans of tuna. Hoarding cans of tuna is a better strategy to ride out inflation than buying gold, silver, or bitcoin according to him. “Inflation is about to take off. Best investments are cans of tuna and baked beans. You can’t eat gold, silver, or bitcoin,” he continued.
He is back with another warning that the biggest crash in history may be starting. Emphasizing that the US banking system is bankrupt, he warned that the S&P 500 will be next to collapse, which will “toast millions” of US retirement plans. No more cans of tuna and baked beans? In my natural diet, I’m happy with baked beans without tuna.
I never like to make fun of anyone. This gentlemen has been predicting the end of the financial system as we know it for “years”. Like others in the gloom and doom camp, his goal is simply to repeat that everything will crash until it eventually happens, then to ride on their brilliant predictions to more fame.
The prevalence of “gloom and doom” predictions, especially in the context of financial markets or broader economic outlooks, can be attributed to several factors. Media outlets often highlight extreme or pessimistic viewpoints because they tend to attract more attention. In other words, negative news can be more sensational and attention-grabbing, leading to increased viewership or readership.
Fear is a powerful emotion and predictions of doom and gloom can tap into people’s anxieties and uncertainties. Individuals who make extreme predictions, whether about economic collapse, market crashes, or other catastrophic events, may gain attention and followers. This attention can translate into financial gains or increased influence.
Throughout history, there have been instances of economic downturns, financial crises, and other adverse events. Some gloom and doomers may point to historical precedents as evidence for their predictions of doom, emphasizing the potential for history to repeat itself.
It is important for individuals to approach predictions, especially those with a negative bias, with a critical mindset. While acknowledging risks and uncertainties is essential for informed decision-making, it is equally important to avoid succumbing to excessive pessimism.