Created by Ray Dalio, the founder of the world’s largest hedge fund Bridgewater Associates, this animated video answers the question, “How does the economy really work?” Based on Dalio’s practical template for understanding the economy, “the video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work and why economic cycles occur.”
In the end, the economy shapes many of our personal finance decisions. It helps determine whether the markets rise or fall, whether interest rates go up or down, and whether inflation rises at a moderate rate or not. Being mindful of economic trends ultimately lets you make more informed financial decisions and navigate changes more effectively. In 30 short minutes, you can see what economic trends and conditions an accomplished investor pays attention to. And, from there, you can factor them into your thinking as well.
Ray Dalio regularly offers free commentary on the economy and the investing environment on Linkedin. You can find his updates here.