Rich Dad / Robert Kiyosaki Blog

May 15, 2009

Robert Kiyosaki / Rich Dad Bulletin 1

Filed under: Articles — Tags: , — ~ @ 12:15 am


1 of 4 Bulletins from Robert Kiyosaki, author of Rich Dad Poor Dad

 I believe that you will find the information contained in this bulletin and the following bulletins useful, especially in these very uncertain times.

The destruction of the World Trade Center, on September 11th was beyond horrible. How anyone could dream and carryout such an unthinkable event is far beyond me.

When the news of anthrax delivered by mail made the news, all I could do was shake my head in disbelief. How much more fear, terror, and bad news can we take? Making things worse is the news media constantly playing and replaying the bad news. One program finishes discussing the anthrax scare and the next program comes on discussing the same news over and over again. Enough is enough. Isn’t there any good news?

Positive vs Negative

The answer is “Yes.” But there is a caution. Most people today, are working hard to think positive. While positive thinking is good, it lacks something very important which is bad. It lacks reality because reality is made up of positive and negative. People who only think positively live in a surreal dream world and fail to see the real world.

Positive thinkers are saying right now, such things, as “Things will get back to normal soon.” “This war will end soon.” “The stock market will rebound in 2006.” “My 401k is down, but the stock market has always come back.”

Positive thinking keeps people stuck and frozen in time and negative thinking does the same. Positive thinkers and negative thinkers are often left behind when things do recover. If you want to do well in the near future, you need to do more than think positively…and definitely do more than think negatively. This time, things are different.

The following is a rough draft excerpt from the next book I am working on. It is about how my rich dad taught me to see the future. Because some of the content is timely today, I modified it slightly and offer it to you now  rather than later. I trust that it assists you in better preparing for your future.  

The Bulls, the Bears and the Chickens!

Years ago, my rich dad taught me to think beyond positive. He said, “If you want to be successful, you must be able to see the good news in the bad and the bad news in the good.” Heeding my rich dad’s advice, I could tell there was a market crash coming, and when the stock market crashed in 1987, I saw the good news in all the bad news that the media enjoyed reporting about. After the 1987 crash, many people pulled out of the market and went into hiding. 

As my rich dad said, “In any market, there are always Bulls, Bears, and Chickens.” Soon after the 1987 crash, the chickens definitely out numbered the Bulls and Bears. People thought positively and waited around for the recovery. The problem is, we did not recover and instead the country sunk into a recession.

The chickens became depressed and continued to wait around for things to get better. While they waited, Iraq invaded Kuwait and the Gulf War was on. Once the war was over and the troops came home, the recession lingered on and now the chickens cried the blues, or squawked the blues.

George Bush was not re-elected even though he won the war…but Bill Clinton was. As the news headlines read after Bush was defeated, “It’s the economy stupid.” In other words, the chickens did not care about winning the war…they cared about money.

In 1994, the market finally rebounded and the biggest bull market in world history was on. The chickens, still not sure about things waited. Many waited until around 1998…just to make sure this Bull market was for real.

At the peak of the market, the chickens finally came out of the chicken coop and invested like chickens without heads saying such things as, “This time it’s different.” “This is the new economy.” “The internet and technology will make us all rich.” In March of 2000, the crest of the biggest financial tidal wave in the history of the world peaked and crashed. Today as I write, chicken feathers are seen everywhere.

Is 1987 being repeated?

Yogi Bear’s famous quote is, “It’s déjà vu all over again.” In other words, is 1987 being repeated? Today, there are similarities. In the year 2000, there was a market crash, a recession was on, another George Bush is in office, and now in 2001, another war has broken out in the same part of the world. Is it déjà vu all over again? I don’t think so.

This time this war and this recession are very different. None-the-less I think the more important questions for all of us are “During this period of turmoil, will you be a Bull, Bear, or Chicken?” The other question is, “Are we going to sit around and wait for things to return to normal?

When the market finally did change, they were not prepared and missed the biggest market move in the history of the world.

No one likes war, except those people that sell arms to both sides. War is a horrible event, especially now that it is being fought on our shores. None-the-less, this is not a time to be a chicken. During the last  market crash, the last recession, and the last war, my wife Kim and I studied, invested, and prepared for the next bull market.

That is how we got ahead and became financially free in 1994. While we were moving forward, we had other friends who did nothing. Instead, they watched television day in and day out, listening only to the bad news of the war, the recession, and the lay offs. 

Day and night, they wallowed in the bad news. Instead of preparing for the next boom, they sat around, thinking positive thoughts, and waited for things to return to normal again.

When the market finally did change, they were not prepared and missed the biggest market move in the history of the world. When they finally got the message that there was a raging bull market on, and finally did enter the market, they entered too late and were slaughtered.

That is the price of being a chicken. In other words, as the bulls turned to bears and were getting out of the market in 1998 and 1999, the chickens were moving in. Please do not let that happen to you.

As bad as things are, now is the time to be preparing and studying, rather than hiding in chicken coops. With all this bad news today, it is important to do more than just think positively…which is what the chickens are doing, waiting for things to return to normal.

Things will never be normal again. The attack on the World Trade Center did change the world forever. Even though these are frightening times, now more than ever is the time to see the positive inside the negative, study, learn new skills, and prepare to bravely move forward.

As the bulls turned to bears and were getting out of the market in 1998 and 1999, the chickens were moving in

Though optimistic about the future, I am concerned that this stock market crash, this recession, and this war are different. This time this war is on our shores and this recession could become a depression, if we are not careful. History shows that approximately every 75 years, there is a depression.

It has been 71 years since the last depression. If there is a depression or a long deep recession, I am afraid that many mutual funds and 401Ks will be in trouble for years and some may never recover, dashing hopes of a comfortable retirement for millions of people. In other words, I doubt that this next economy will rebound as nicely and cleanly as we did in 1994. 

Personally, I am studying and increasing my business and investing skills even more. I too need to be sharper and better prepared in order to move forward. I too cannot rest on my past success or laurels.

My financial security is at risk and so is yours. No one has a crystal ball, but we call all be prepared for whatever happens. Today, we need to be both bulls and bears if we are to be ready for the future.

If you are prepared, you will do well financially, even if we do slide into a deep recession or even a depression. Today is the time to prepare for the future…a future that will be very different.

That is the rough draft excerpt from my next book. It is about how my rich dad taught me to see the future and more importantly now to prepare for the future. I wish it was ready today, but it isn’t. None-the-less, I think you can see how preparation for a brave new world is more important today, especially after September 11th.

If you have the time and resources to invest in your future, please do. You need to greatly increase your financial knowledge and better prepare you for the choppy financial times ahead. I will spend some time discussing what I see to be the future of business and how to be prepare for whatever the future holds.

Most importantly, you will learn how to do well financially regardless if the market goes up or if we do slide into a worldwide depression. Prosperity or depression, you will be prepared to do well in any economic condition. As I said earlier, now is the time to be a Bull and a Bear…but not a chicken.

Being smarter, better prepared and more vigilant

Regardless if you are an experienced investor or a beginning investor, you need to invest in yourself.  Don’t let you or your loved ones down during this coming period of financial turmoil. This time it is different. This is not 1987 all over again. This time, all of us, myself included, will have to be smarter, better prepared, and even more vigilant, if we are to do well financially.

Listen to the tapes and read the books, learn all aspects of Cashflow 101 and 202 and decide to prepare yourself for the coming financial volatility and challenges that we will all face.

Realizing that not all of you will be able to attend my up coming events, I will be posting three more bulletins like this. Each bulletin will be about what I see to be the future of business and what you can do to do well and   prosper during this time of tremendous economy turmoil.

Each bulletin will contain simple and useful information about the coming changes and why this time it will be different…why it will not be déjà vu all over again…and what you will need to do differently.

Thank you for reading this first of four bulletins and I wish you all success and happiness…and always remember what my rich dad taught me about how to see the future. He taught me to see the future by seeing the good news inside the bad news.

And that is how you too will begin to see the future. As my rich dad sad, “The future belong to the brave and the brave will do well financially.” He never did say what happens to chickens, but I think we all know that answer.

Click below  for the other bulletins and thank you again.

Robert Kiyosaki
Author of Rich Dad Poor Dad


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