Finance. Let’s face it. It feels like the American economic system is designed to confuse people. Much like the law where we rely on attorneys to explain complex, long-winded sentences and four syllable, sixteen character words, in finance we have created a bevy of financial advisers, financial planners, fiduciaries, economists, certified financial analysts, quantitative analysts, etc. ad nauseam.
Economy is a hot button issue these days. After all, we’re in a Presidential election year. On one hand, we’ve got the left (and far left) view of Clinton-Sanders’ campaigns, and on the right we’ve got the questionable businessman Donald Trump. All have their own version of what’s best for this country and, unfortunately, most of the public rely on our candidates to explain what’s happening.
The reality is we shouldn’t. Who can explain how the American economy works?
Enter Ray Dalio. The preeminent American hedge fund manager. Armed with a Harvard MBA, he clerked on the floor of the New York Stock Exchange, traded commodities in his spare time with Merrill Lynch, and in 1973, started a small company called Bridgewater Associates.
Haven’t heard of them? Shame on you. As of 2012 they’ve dominated the American hedge fund world, becoming the largest, big, bad guy on the block with $150 billion in managed money. That’s right. “B” for billion.
Recently, Ray Dalio put together a thirty-minute explanation of economics for the layman. It’s worthy of thirty minutes out of your day. Trust me on this one. You can be the knowledgeable guy at parties now. So instead of listening to blowhards vying for your vote, maybe we should give thirty minutes of our time to the best hedge fund manager in America. Let him explain to you how economics actually works.