Week 2 – A timely template for understanding debt crises
A lot of exciting product announcements this week, and we take a look at possibly the most bulletproof passive investment strategy. As always, anything we talk about is focused on giving you ideas to make better long-term decisions about health, finances, business and more.
Ray Dalio's new book, "A template for understanding big debt crises" is out on Amazon. You can also sign up to get a free PDF delivered to your inbox here. If you've read his material on how the economic machine works, this will be an expanded, mass-friendly version. The most valuable part are the detailed case studies on individual economies.
On the topic of Ray Dalio, the second investing principle I would like to introduce is Risk Parity.
If you would like to apply risk parity in your investing, you may want to dig into this post on Re-engineering Risk Parity by Signalplot (a Bridgewater alum). Risk parity is also a principle that basically mandates investing in crypto assets once you establish that Bitcoin is uncorrelated to existing asset classes.
Some popular investment tech solutions are starting to offer Risk Parity strategies, in particular Wealthfront. I cannot endorse this particular implementation, but would certainly encourage existing Wealthfront customers to have a look. You only get 1-2 chances in life to weather a big financial crisis, it's worth thinking up-front how your portfolio will deal with that.
Finally, I have a hunch that risk parity holds importance beyond finance. The idea of keeping risks equal (or repeatedly mitigating the biggest risk) may hold the answer to stress-free living.
The Apple Watch Series 4 was announced this week. This device is making leaps in protecting the individual through multiple aspects:
- Automatic fall detection
- Cellular emergency calls
- Low and High HR detection
The biggest advance, however, is the FDA-approved electrocardiogram coming to US users. This will certainly be valuable for anyone at risk of heart disease.
If you would like to learn more about health wearables in the meantime, please visit this podcast from Peter Attia. Peter is a longevity expert and one of my primary sources for inspiration on how to approach this topic, so we will hear some more from him.
The device he recommended was the Oura smart ring, which tackles sleep measurement in addition to passive HR measurement.
I sent several responses to a thread asking for book recommendations on meta-learning. Some of you who are interested in learning strategies and techniques may want to take a peek.