MY BACKGROUND TRAINING is as an economist. And yet, trying to explain such things in an easy-to-understand way can often prove rather difficult.
Australia has been more fortunate than most countries emerging from the GFC. And yet, there seems to be a certain complacency regarding our economic well-being.
And that’s probably because there is now an entire generation who have never really had to face “tough times”. As such, they have paid little attention to how the economy as a whole actually works.
However, I came across this excellent video by Ray Dalio – who is the billionaire founder and CEO of probably the world’s biggest hedge fund firm … Bridgewater Associates.
As a dedicated student of history, Ray provides you with a simple template – which is summarised in his video above.
Given what he has managed to achieve, I thought it was something you might care to watch – if nothing else to confirm your own present understanding of how everything works.
And just make sure you watch right to the end – because you will find Ray Dalio leaves you with 3 Rules of Thumb to operate by.
Best wishes …