Oct 27 2013

How the Economy Works in 30 minutes by someone who should know

Ray Dalio is worth a cool $13 billion.

His investment company, Bridgewater Associates, is the world’s largest hedge fund, with $150 billion to look after.

He’s made his money by predicting big macroeconomic cycles. The New York Times says ‘he is one of the few investors to see the financial crisis of 2008 developing, and perhaps just as important, the rebound.’

Until now, his economic theories have been only known to those clients willing to invest with Bridgewater, paying the 2% management fees and 20% of profits.

But Mr Dalio has now decided to share his approach via a rather engaging cartoon on his new web site Economic Principles.

“While I kept it confidential until recently, I now want to share it because I believe that it could be very helpful in reducing big economic blunders, if it was more broadly understood,” he told the NY Times. He explained that, “I believe that most influential decision makers and most people cause a lot of needless economic suffering because they are missing the fundamentals.”

Even I could understand ‘How the Economic Machine Works in 30 minutes’. It should be piece of cake for someone who has a Macroeconomic exam next week (I’m looking at you, Oliver).