fbpx

Ray Dalio: How The Economic Machine Works

A must-watch video produced by Ray Dalio, founder of Bridgewater Associates, the largest hedge fund in the world. Bridgewater has managed over US$160 billion! You can predict the next economic cycle and understand the economy more by watching this video.

CLICK here to watch> https://www.youtube.com/watch?v=PHe0bXAIuk0

Here is our summary of this video:

1. The economy works like a machine. We can predict economic cycle based on the historical patterns.

2. There are short debt and long debt cycles. A short cycle takes about 5-8 years and the long cycle takes 75-100 years.

3. Credit matters most in the short run and drives the cycle up and down. With more credit, people spend more and boost the economy. On the other hand, with less credit, people spend less, leading to an economic recession, e.g. the 2008 financial crisis.

4. There is always an economic cycle happened and cannot be avoided.

5. With more credit, people’s spending and incomes grow faster than the production of goods, so the price rises and inflation happens. If inflation causes problems, Central Bank will raise interest rates gradually, which may lead to the economic recession at the end. Then Central Bank may lower the interest rate to stimulate the economy. With a lower interest rate and more credit, people’s spending and incomes grow faster than the production of goods again, leading to a cycle and the economy will be up and down.

6. To conclude, we think economic boom and recession must happen in future. Just like Warren Buffett said, “Be fearful when others are greedy and greedy when others are fearful”. There is no need to worry so much during the economic recession and no need to be so euphoric in economic boom.

Today ClariStock (https://claristock.com/) redefines an equity analyst. We do not rely on any human analyst to analyze US stocks. Instead, we use computer to analyze stocks. We have a mission that we work as a Wall Street Analyst to serve everyone in the world in investing and makes it universally accessible, useful and affordable. Most importantly, our service is FREE of charge, unlike the wealthy who need to pay a lot for asking Wall Street firms to give them investment advice and manage their assets. Now you need not spend a single penny to get that service!

WHY USE ClariStock? 4 Advantages of using ClariStock:

  1. Use 20% of time to get 80% of stock information
  2. Clarify ANY US stock in just 1 MINUTE
  3. Use computer to analyze stock without any human bias and emotion
  4. FREE to use

When you hear a US stock name, just enter the stock ticker in ClariStock (https://claristock.com/), ClariStock will quantify this stock and tell you the most valuable information immediately. Total mark above 70 means the stock is a quality growth stock with high growth potential and strong fundamental.

CLICK here > https://claristock.com/blog/how-to-use/ and LIKE our Facebook page, https://www.facebook.com/claristock , to know how to EARN MORE, SAVE TIME and how to analyze ANY US stock in JUST ONE MINUTE!

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to Top