Everyone knows that the economy drives very facet of society; from you and me, to your average household, your employers and their clients and ultimately the government and the country.
Understanding the economy will assist you to understand the market better. I most certainly can’t explain the economy to you but Ray Dalio could in his animated video: How The Economic Machine Works.
Ray Dalio is the billionaire founder of Bridgwaters Associate, one of the world’s largest hedge funds. If the name Ray Dalio is familiar to you, you may recall that he predicted the 2008 recession in the USA.
Two things to take away from the video: debt and spending.