Latest news with #financialcrash
Globe and Mail
05-06-2025
- Business
- Globe and Mail
Robert Kiyosaki Just Warned ‘Millions Will Be Wiped Out' in ‘Biggest Crash in History,' But Says Do This To ‘Become Very Rich'
Robert Kiyosaki, the renowned author of Rich Dad Poor Dad, has issued a stark warning to investors, claiming that the 'biggest crash in history' is imminent and could unfold throughout the summer of 2025. In a tweet now viewed by millions, Kiyosaki referenced his 2013 book Rich Dad's Prophecy, asserting that his long-standing prediction of a historic financial collapse is now coming to fruition. This comes at a time of extreme market volatility and uncertainty due to ongoing trade wars, high interest rates, inflation concerns, and more. However, Kiyosaki does say there is hope for investors who are willing to invest intelligently and capitalize on the current opportunities the market is presenting. A Dire Warning for Boomers and Traditional Investors Kiyosaki's message is particularly pointed toward Baby Boomers, whom he believes are at greatest risk. He predicts that millions in his generation could see their retirement savings and investments 'wiped out' as stocks, bonds, and real estate markets tumble. 'Crash time is now and through this summer,' Kiyosaki posted, emphasizing that the downturn will not be limited to equities but will extend across all major asset classes. Amid the anticipated chaos, Kiyosaki forecasts a massive migration of capital into alternative assets — specifically gold, silver, and Bitcoin (BTCUSD). He argues that as traditional markets falter, 'billions will rush into gold, silver, and Bitcoin,' with these assets serving as safe havens during the turmoil. Silver: The 'Biggest Bargain' of 2025 While Kiyosaki remains bullish on gold (GCQ25) and Bitcoin, he singles out silver as the most compelling opportunity. He claims silver (SIN25), currently trading around $35 an ounce, is still 60% below its all-time high and could triple in value by the end of 2025. 'The biggest bargain today is silver. In 2025 silver may 3X,' he wrote, urging investors to buy physical silver rather than exchange-traded funds (ETFs), which he dismisses as 'fake money.' 'Silver is priced around $35 an ounce, which means almost everyone anywhere in the world…has a chance to grow richer…while millions grow poorer,' Kiyosaki stated, encouraging followers to act decisively to protect and grow their wealth. Don't Miss: Advice: Take Action or Be Left Behind Kiyosaki's message is clear: those who are proactive and shift their portfolios into what he calls 'real assets' may not only preserve their wealth but could become 'extremely rich' during the downturn. He ended his tweet with a call to action: 'What are you going to do tomorrow…grow richer or grow poorer? Please choose to get richer.' However, critics have pointed out that Kiyosaki has called '9 of the last 0 market crashes.' Resurfaced tweets show he has made similar calls in December of 2023, July of 2023, September of 2022, and September of 2021. His track record suggests that while it's good to be wary of market conditions, as is true at any time as a prudent investor, it's unclear how much stock you should actually put into his latest warning. Regardless, it's never a bad idea to consistently reassess your portfolio, adjust to the times, and hedge your bets. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The Independent
16-05-2025
- Business
- The Independent
New 100% mortgage launched for buyers with no deposit
Homebuyers have been given the chance to purchase a property without a deposit after a lender announced it will start offering a 100 per cent mortgage. April Mortgages is offering the deal to UK residents who earn at least £24,000 income (including as a household) and are looking to buy or remortgage a house that's valued at more than £75,000. Borrowers must lock in their interest rate – starting at 5.99 per cent and automatically decreasing as they pay down the mortgage – for a fixed term of 10 or 15 years. Such products were more commonplace and were popular before the financial crash in 2008 but have become The deal, which has been described as a 'game changer', is typical of the type of mortgage products that were available before the 2008 financial crash, but have now largely disappeared. What it means for buyers April's decision to add a 100 per cent mortgage option is a boost in terms of options for those who struggle to get a sizeable deposit together, but there are of course drawbacks. Newbuilds and flats are not available for the deal, but there are no fees for overpayments and the interest rate payable on the loan will also reduce as more of the total amount owed comes down. However, as the loan to value (LTV) rate is higher, so too is the interest rate payable when compared to 'normal' deals on the market, with April Mortgages' deal starting from 5.99 per cent. April is not the only company offering 100 per cent mortgages: Skipton has had a 'Track Record' offering for two years which offers those who have rented the chance to get on the property ladder, while Accord mortgages offer a £5,000 deposit mortgage for up to 99 per cent LTV. It's also important for buyers to note other fees they may have to pay. Stamp duty, legal costs, broker's fees and other costs - including changing interest rates at the end of fixed terms - should all be considered. Pros and cons The biggest concern for individual buyers can be falling property prices. If you take a 100 per cent mortgage and the property value decreases over the next few years, the owner will have negative equity - in other words, they will owe more than the house is worth. If they need to sell, they may end up having to find more money to pay off a property that they initially put no deposit down on. David Hollingworth, associate director at L&C Mortgages explained the big consideration for borrowers before taking on such a decision - and why April's rules on the product might prove beneficial. 'We know that borrowers struggle to pull together the big deposits that are so often required to buy in the current market. April's new deal will add another option to those that have strong affordability but can't amass a deposit, whilst meeting high rents and living costs,' he said. 'Borrowers will need to evidence their ability to meet mortgage payments. In addition, they should think about the higher potential for negative equity if property prices were to fall. 'Negative equity becomes a problem for those that need to sell, crystallising any loss. The stability of a fixed rate will provide shelter from fluctuating interest rates, which could help them ride out a dip in prices.' Another factor is that interest rates on mortgages can be significantly different if buyers are even able to raise a small deposit - last month's rates showed that a five per cent deposit on a £200,000 house would be mean repayment terms were £3,500 cheaper to pay over a five-year period. With the UK government prioritising housebuilding and getting people on the property ladder, a succession of changes have happened this year in the mortgage market. One key issue has been the battle for remortgaging clients, with interest rates dropping this year. Barclays recently announced their lowest rate of the year at 3.85 per cent, MPowered Mortgages have cut three-year fixed rate mortgages to 3.88 per cent and Nationwide are starting from 3.84 per cent for both new and existing customers. Nationwide has also become the latest company to reduce their stress test rates, meaning lenders could borrow up to £28,000 more than previously. Santander did likewise last month, while Skipton recently brought out a mortgage product with no repayments for the first three months.
