Ray Dalio’s Economic Machine

I feel a deep sense of responsibility to share my simple but practical economic template
-Ray Dalio

Here’s a simple and straightforward explanation of how the US economy works from hedge fund manager Ray Dalio. Keep in mind that this explanation is a theory, albeit a very pragmatic one, and not definitive law. That being said it’s probably the best 30 minutes of economic education out there on the inter-web. For those who don’t have 30 minutes here’s the high points:

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The Nonsense of Quarterly Earnings

Four times a year the financial media feels the need to dramatically parade the quarterly performance of America’s biggest companies across our television screens and internet pages. It’s January, and the dog and pony show is back. I don’t mean to downplay earnings as they are indeed important. Successful businesses must continue to generate profits. What isn’t important is the over-hyped focus on short-term results.

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