One of the greatest.
No, I haven’t gone totally delusional (yet). I’m not speaking of myself.
I’m talking about Ray Dalio.
At 68, the founder of Bridgewater Capital was said to have a personal worth a personal worth of $17.4 billion dollars earlier this year.
His started investing at 12, with his first investment being a triple bagger.
He started Bridgewater in his apartment and has returned more money as a hedge fund manager to his clients than anyone ever (according to this great interview with him conducted by Tony Robbins).
He has a ton of accolades that can be added to that but I’ll stop there. You get the point, the man knows markets pretty darn well.
The Fed is supposedly raising interest rates a bit faster than anticipated.
That is news from this past Wednesday. We can also look forward to them doing an unwinding of their balance sheet that no central bank in history has ever done before. Then there are bond yields. Then there are…well they’re a ton going on and in my trading room I’ve come to realize that lots of newer (and even veteran) traders that don’t totally understand economic cycles and correlations between the various pieces of a monetary-based economy.
If you’ve got skin in the game, you should at least know the basics of how interest rates tie into currencies, capital markets, yields as well as the interplay beyond those factors.
That’s where Dalio comes in. He’s been doing a lot of teaching and he does it well. The video below is “How The Economic Machine Works” [in 30 minutes]. I think he does a fantastic job of summarizing what can be some pretty complicated ideas.
Like I said, if you have skin in the game…you should know the game. If you EVER see this, thanks Mr. Dalio.