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Author of Rich Dad Poor Dad, Robert Kiyosaki’s Investment Strategy for 2010 is the Same As Mine

By: Steve Johnson

2/25/2010 - 36 Comments

Several months ago, I wrote an article about my investment strategy for 2010.

In the article, I explain how I plan to double my money twice this year even as the stock market collapses.

My strategy was to short the market during the crash, which will also pull down the prices of precious metals. Then after the crash I will move back into gold mining stocks and enjoy the rebound.

If everything goes as planned, I would double my money during the stock market crash and then double my money again when the prices of gold rebound. 

Yesterday, Robert Kiyosaki posted and article on his yahoo personal finance blog in which he basically said the same thing that I have been saying.

Here is a quote;

“If the dead cat bounce dies and the Dow drops to 5,000 in 2010, as I predict, then the price of gold and silver may die with the dead cat of the Dow, as investors cling to cash. The next question you need to answer is, “If the Dow dies and the price of gold and silver drop, what should you invest in at the bottom…stocks, gold and silver, or cash?”“

The only difference is that I don’t think the Dow will drop below 5500, which is key because you need to know when to sell your short of the Dow.  If you sell to soon, you could lose the money that you made and if you wait too long you could miss the rebound in gold.

After six months of watching the market and the governments monetary policies failures, I am even more convinced of this investment strategy than I was when I first wrote about it.

My 401k

The only problem is my 401k, which I also recently wrote about.  My 401k money is trapped.  There is no option to short the market or move to cash. 

I cannot short the market and I cannot sell my natural resources mutual fund (which contains previous metals and oil) because I don’t have any other options that are not going to drop with a stock market collapse.

I cannot move to foreign stocks because when the market sinks, all domestic and international stocks will also drop.  And I cannot move to bonds because China and the rest of the world will continue to sell US bonds. 

I'm afraid my best option is to stay in natural resources and ride the market down and then back up again. The longer the market crash is delayed, the closer we move to hyperinflation which will drive up the prices of natural resources. 

So the longer the market crash is delayed, the higher that natural resources are going to increase after the market crash.  

The price of oil could easily double its current price shortly after a market crash and a sell off of the dollar, therefore I could still enjoy doubling my money once by staying invested in natural resources.

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