How The Economy Works. Everyone Should Watch This, Especially Traders. The Section On Cycles Really Opened My Eyes.

Are there gaps in your understanding of how the economy actually works?  This simple, animated video by Ray Dalio, founder of the worlds biggest hedge fund firm, gives you a great overview of how the economy works and the drivers behind it. He touches on aspects such as credit, debt, income, assets, liabilities,  interest rates, spending, economic cycles, productivity growth, inflation, deflation, recessions, debt burdens, deleveraging, depressions…

If you are a trader and you don’t fully understand the fundamental aspects of how the economy works then I highly recommend you watch this video to gain a solid, basic understanding. The aspects explained in this video are directly related to what is driving the markets you are trading in, so makes sense to understand this right.

What is your understanding of the economy and how that relates to your trading outcomes? Let us know your thoughts in the comments section below.