Subtitles section Play video Print subtitles This is the rich dad radio show, the good news and bad news about money. Here's Robert Kiyosaki. Hello, hello house Robert Kiyosaki, the rich dad radio show, the good news and bad news about money. And as you heard, we're in a middle of a major, major, major auto unquote and DEMEC. And the question is, is this pandemic or rail and Moss ball, even if it is rail or not real, which will not saying it is or not, what is it going to do to the global economy? What's it gonna do to your portfolio, your future, your jobs, your retirement, and your family? So have a very important guest today. His name is spit and a dear friend for years is Bert Dohmen. He's a coauthor me as the author of the book, prelude to a meltdown and financial apocalypse, which as you may have noticed, we're in it right now. So I'm going to find out how real is this Corona virus. But more importantly, what is its impact as a whole world goes into a Pedic and it comments. Kim ver Burt's, a dear friend and, and always, always exciting and interesting to have him on the show. And he's also number one, he's an educator, which is why we relate so well to him. He really wants people to get educated about the stock market and what they're investing in. And number two, he's a, he's a major researcher, so he goes places where most people don't look. So I'll give a big commercial message right now, his publication as the Wellington letter, I subscribe to many use letters and I dropped them all except the Wellington letter because Bert actually gives it the information I need, not the ups and downs of the stock market. So anyway, it's a very exciting time. The question is, how real is this coronavirus but even if it's not real, if it's a fake virus, what's it gonna do to our money and our future? Welcome to the program. Bert, welcome Bert. Thank you very much, both of you. It's really a pleasure to be with you. Uh, you know, especially in times like these, eh, I think it's really time for people to get, you know, uh, the results of some serious analysis that we do. Uh, not just the stuff that you see in here and the, uh, financial media. There's so much bad information going out. You know, like, uh, I remember on February 24th, that was the first down day. Uh, you know, we heard, Oh, don't panic. Nobody ever made money panicking. You know, I have wrote on Twitter, uh, which is at Bert omen and uh, I wrote, you don't, panic is a response from nature built into all the big new things. And it's that sort of response that can save your butt and that's by nature put it there. So it's good to panic. But you got to panic early. Yeah. Was that the first day of the crash? And now don't you think that people who panicked on that day are very, very happy? I said, of course our subscribers didn't have to panic because the Sunday before that one, one day before we put out a special bullets and I think it was about eight pages and we said the headline was the financial storm begins and the last paragraph had in it, the ban that them is about to break and we gave all the reasons why it was going to happen. The whole rally for one year propelled by about a dozen big cap stocks wrote the S and P and the Dow Jones industrial index to a new record high. It was going up, up, up and people thought, Oh, stocks buying stocks is just so simple. They only go up and I said, a big bull trap is being set. This is only happening. That pushed it up to 12 stocks in order to make it look like a bull market by the thousands of other stocks are already being pushed down and many of them in bear markets. And we showed the difference between the S and P and a much broader index. We always look at to tell us what the true market is doing, right? And that's the value line, right? The symbol is a V, a,L , U. G. so, so Bert Soper, let's get back to the beginning of this whole thing. So, you know, panicking us. Okay. But preparing is better. So Kim and I and the rich dad company was set up. We sit here kind of fat, dumb and happy because we've been preparing for years for this. And in other words, since I met Kim, she knew, she knew I was always in a panic mode. Anyway. So anyway, uh, the question is, is, is this coronavirus real or fake for the virus? Uh, it's, it's a real virus. It is highly infectious. Uh, it looks like where it was made, it was an [inaudible] was made to be highly infectious, but it was not made to be, uh, highly deadly. And that is the big difference. And nobody really talks about that. And now we, we're getting some better statistics. The prior ones were from China, which you cannot trust, but now we're getting out those statistics like the people on the cruise ship, they had the virus going crazy around the cruise ship. We know how many people were infected. We know how many died. Now we're getting the numbers from the U S you know, to 105 deaths so far, 14,000 infections. So we're now getting the real numbers and it looks like for most age groups, the fatality rate is maybe 1% this is like the flu [inaudible] not a good reason. It's actually into an immediate depression. It's actually, it's actually less than the flu. I just have statistics from January, February alone of this year that we've got deaths worldwide, deaths of Corona virus 2,360 but we've got worldwide deaths from the common cold and flu of just under 70,000 I mean, nobody's talking about that. Thank you very much Kim. That is that seed. That is the essence. And then you have to wonder why are all the governments going into a hysteria generally. This is just so strange. Why is this happening? And the governments of other countries, and let's face it, most of the people in governments are not that bright and they are now, first it was a panic. Everybody was at people's panic. Everybody rushed into Costco to buy toilet paper. And then the officials suddenly panic. And that's even worse because they can use force imagery. For example, the police were giving deadly force, the power of deadly force for anyone who's walking on the street and violating the court team. Everybody in Madrid has to stay at home. Okay, this is this panic you, you're willing to kill people to save them from being killed by the virus. Does that make any sense? Yeah, but, but see said Bert, look, this, the public got to get to right now. So you think when we're talking early, you think this is more biological warfare. But the real question is, let's say it is or it isn't. You know, it's a big panic that says real or fake who cares at this point, they're calling out to national guard right now. You know, that's going, we're going to probably civil unrest. But my question to you is this, what is going to happen to the economy if I've never, if everybody, let's say we have 20% unemployment and people cannot work, people cannot, they don't have any money. And as you know, any one of these panics, it damages the most financially vulnerable. You know, just think of all the guys that work in restaurants and all that, they're not flush with cash and they got kids to feed. So what's going to happen to the world economy? That's the more important question. I think it's fake personally fake from the point of view that the panic is real. But the virus may not be that deadly. But the point of view is what do you think is going to happen to the economy of the world, I think and the stock market. Well, the panic is irrational, but the past because of the panic is going to happen and we are going to go into a depression. Okay. And I believe you don't know if there, there's some reason to think, and I'm not saying that is it, but one alternative, you have to think who would benefit from a depression. Okay? Just just a food for thought. Okay. If something irrational happens, if something that doesn't make sense, I have learned from trading the markets for about 50 years with my own money and not other people's money. Okay? All the guys on TV, it trade other people's money. I trade my own. Okay? So I have to be much smarter than all of these guys because when they lose money, that's the client's money. And so you have to think, what is sweetie happening? And so many times in the market, we have forecasts, every sharp crash in the market and every bear market in 43 years of my business, okay? Right now, during these last four weeks, we have a program called hedge folios. We have five model portfolios, okay. And people can line up their portfolio with our model just with a click of the mouse. That's simple. Okay? What, what is the outperformance over the benchmark index that we use? The value line, we are up 69.4% so you're making money. So you're making money. almost 70 percentage points above the value line. Hey, Bert, Bert, Bert, Bert. So will make him on it. My question is, what is your forecast for the economy? If you have 20% unemployment, people have no money tax rate. What's going on? What's it going to look like? That's what want to know. Yeah, the real it's supposed to look like, you know it's gonna. It's going to cause huge unemployment. It's going to cause an avalanche of bankruptcies is gonna cause so many failures, so many people on the streets. And when people are hungry and don't have money to pay the rent, don't have money to buy food, they write it. Okay. And suddenly, ah, it's capitalism's fault. We need Bernie. So, and so you asked the question, who would benefit from a depression? So who, who does benefit from a depression? Well, I, I know exactly who, and I even have names but I'm not gonna say it under this program. Oh shit. Clear. But it was this happening. It's so quick. It's crystal clear what is happening. So w without mentioning names, what is crystal clear that that's the way on this truck? We all know this, a panic. We all know this. It'll people have to do some reading because you know, I have these conversations with people all the time and they make judgments without knowing anything. Okay? And you see something like I just said in this yacht, this conspiracy stuff, you know, you know what, there's an old statesman Bismarck in Germany, but 120 years ago, he said, nothing happens in the world of politics by chance. Okay? And this is something I've gone by all the time. When something inextricable happens, you have to say this was intentional, is, was planned. And you know, I'm not saying that all the shutdowns were planned ahead of time, but may preps they were, perhaps they weren't. I'm not making any judgements. I'm just considering different possible possibilities. And that's what you have to do in the market. So, so, so, so Bert, Bert, Hey Bert, Bert, look, everything you've been predicting is coming true. Now everything you've been predicting is coming true. What way? So you don't have to tell your letter anymore. I've taught it enough. A point is what? What do you, what would you advise people to do right now? And if you don't want to, then you know the average guy right now, they don't, they cannot subscribe to your noon. So they don't have any money. These guys can't put food on the table after this. So what would you advise people who, let's tell you how you have a 401k. Let's say you're working for a company that's going to go bankrupt. What would you say to them? They've already, they didn't, he, they did not heed your warning. So what can you tell them now? Uh, you know, I'm, if somebody didn't listen, uh, I guess I would say to anybody who dug themselves a big hole, the best thing I can say is stop digging. Stop listening to the guys who got you there. But what can they do, Bert? That's what I say. It started reading some books about the economy, the economies and the markets and some good books like our financial apocalypse book. Is it 2008 chronological history, how we call it, the financial crisis in 2008 if you said by late in a year we're going to have global financial crisis. Okay. It was a thick book. Okay. It was still sell it, but [inaudible] I read, I read your book. You were right on y'all side there. During that time that wall street was super bullish. Everybody was super Buddhist and nobody wanted to listen. Yeah. Burton the car. Bert, Bert, Bert, you're right. Everybody knows you're right now. But what does a person do? That's what I, you know I keep, I keep asking, what are you going to do? The average person's out of money. They have no job. They have, they have rent them a mortgage. You have kids never let a toilet paper and that lot of toilet paper and they read your book now, so they read your book by this too late. So what would you recommend? Now that's read book. I have to read my book. It's a little too late for that. We sold it. We sold it for 10 years. The last 10 years. We said, this is the guide for the next financial, so what is the guide? It would get a few orders once in a while people didn't care.