I cheated this
week and am making one longer commentary, as opposed to two shorter ones.
This is due to my own personal time crunch, and the depth required for this
subject.
Further, I am
using Google Docs. for the deeper dive into this piece, and can be accessed here. What is
contained there is my summary notes of the 30 minute embedded video Ray Dalio
put together entitled “How the Economic Machine Works”.
Dalio runs the
world’s largest hedge fund, the $120B Bridgewater Associates. This is the most
simple and succinct explanation of how money and credit are used in
transactions, the sum of which is our economy: why we have booms and busts,
where we are at in the current cycle, what’s likely to happen moving forward,
etc. Dalio boils this all down to the most basic fundamentals, and makes
everything easy to understand.
While I don’t
believe these views are mainstream economic thought, they are much in line with
my beliefs on how the economy works, and provides a practical means to explain
what has happened in the past. Those who follow a similar viewpoint have
been right more often than their peers.
So click the link, use my outline to follow along, and in 30 minutes,
you will better understand what makes our economy tick and destroy those who
challenge you at cocktail parties.
The views and opinions expressed herein are those of the
author(s) noted and may or may not represent the views of Capital Analysts,
Inc. or Lincoln Investment. The material presented is provided for
informational purposes only. Nothing contained herein should be construed as a
recommendation to buy or sell any securities. As with all investments, past
performance is no guarantee of future results. No person or system can predict
the market. All investments are subject to risk, including the risk of
principal loss.
