Around $879 billion was wiped out from the US stock market on Friday due to calls for a recession. The domino effect hit the Asian markets on Monday’s opening bell leading to India’s Sensex and Japan’s Nikkei crashing in the indices. While BRICS tried to distance itself from the dollar and the US economy, all efforts seem to be futile. A crash in the US markets is affecting BRICS despite the alliance kick-starting the de-dollarization campaign.
Also Read: Major Country Wants To Join BRICS and Ditch the US Dollar
Therefore, the de-dollarization initiative is not producing fruits and failed to add a cushion against their economies. The US markets still dictate the native economies and local currency prospects of BRICS and other developing nations despite de-dollarization. The development indicates that cutting ties with the US dollar remains a myth and needs decades of undoing. Read here to know the major US sector that will be affected if BRICS completely ditches the dollar for trade.
Also Read: BRICS: Idea of De-Dollarization Is ‘Non Sense’: Analyst
BRICS: Substantial Losses Await the US Markets, Says Analyst
Robert Kiyosaki, the Author of the best-selling financial self-help book Rich Dad Poor Dad has predicted that the US markets could soon face substantial losses. “As many have warned the stock market crash has arrived. Losses are substantial,” he said. The US markets could also pull down the BRICS nation’s stock market leading to a bloodbath in the indices.
Also Read: BRICS: New Country Plans To Ban the US Dollar for Trade
However, the analyst explained that the US market crash could be the best time to buy the dip and become rich. “Rich dad taught his son and me that when markets are crashing is the time the rich get richer. Buying assets at bargain basement prices. Markets are crashing. Great news. Asset markets are having a sale. This is your turn to get richer,” he tweeted. Therefore, investors in the US and BRICS countries could make use of the market crash and accumulate stocks at discounted prices.