Saturday, August 20, 2016

'How The Economic Machine Works' by Ray Dalio




Economics 101 -- "How the Economic Machine Works."

Created by Billionaire hedge fund manager Ray Dalio this simple but not simplistic and easy to follow 30 minute, animated video answers the question, "How does the economy really work?" Based on Dalio's practical template for understanding the economy, which he developed over the course of his career, the video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work and why economic cycles occur.

To learn more about Economic Principles visit: http://www.economicprinciples.org.

Thursday, August 18, 2016

the past 28–years of stock market returns (S&P 500)





"There are few sure things in investing … that betas (stocks, bonds, real estate) rise over time relative to cash is one of them."    -- Billionaire hedge fund manager Ray Dalio


For perspective, here's a look at the past 28–years of stock market returns (S&P 500). For all of the bearish rhetoric on stocks that we hear from day to day, as you can see, if you're positioning for a down stock market for the year, you're making a low probability bet.

Since 1928, 73% of the time stocks finished the year in the green. On a rolling ten–year basis the average return for the S&P 500 has been 197%, with only five losing rolling ten–year periods out of 79.

One chance away to make it