 There is no formula for investment success. I wish it would be there. But there is a formula for economic success and economic growth. A country's economic growth is the driver of everything else, is the driver of the stock market, is the driver for earnings, growth in revenues. So if we can know which countries will do best in their economies, we can position our portfolios to take advantage of those trends. Lower our risks increase our returns. What I have found is a formula that explains with 84% of correlation what will happen in the economy of a certain country in the next 10 years. Now I haven't invented it, I just have found it on Ray Dalio's economic principle webpage. In his 305 page report that he shares freely with the rest of the world. With the hope that politicians, monetary politicians take it and stop making decisions based on ideology and start using analytics. What he and his 1,500 researchers did. Good luck with that changing the politicians mind. I don't think he will manage. But what we can take from it is investment, strategic data. And that's very, very important. And when it's for free, it's amazing. So thank you Ray Dalio. Let's dig into what he has found. What are the most important factors affecting economies? And what will be the economies that will be the most successful in the next 10 years? So according to Ray Dalio and logically the main driver for an economy is productivity. And then that productivity, economic output can be pushed higher with in-depthness. You have one long-term cycle that takes 75 years to develop and you have lots of small credit cycles every 5, 7, 10 years. We are now also in a credit cycle. So expect it to contract somewhere in the future. Nobody thinks about it except Ray Dalio. So think about it. There will be a recession at a point in time. When? I don't know. But there will be. So what did Ray Dalio do? He tested the factors impacting economic growth based on productivity and based on in-depthness. And he found that productivity affects economic growth with 65% and in-depthness with 45%. The factors that affect productivity are the following. The value of the labor, education, labor productivity, working hard, investments, then the culture, self-sufficiency, savoring life versus achieving innovation, commercialism, bureaucracy, corruption, rule of law. Those are the most important factors in increasing productivity. As for in-depthness, the most important factors are depth and depth service levels, depth flows and monetary policies. And then what Ray Dalio did attached a weight to each factor, looked at the correlations and came out with a model to estimate future 10-year growth rates. So this data is available for free and that's the crazy part. So we can really get the free lunch thanks to Ray Dalio. If you see Ray Dalio off, he has a charity. Please pay some money into that charity for him. He doesn't need your money but it's just a sign of thank you. I will certainly look it up and perhaps share it here online if there is something like that. Back to the correlation, here is what his model does. He analyzed how those factors impact economic growth on 20 countries and checked it 65 years in the past and looked at how that factors impact future 10-year economic growth, correlation 84%. So if you want a good correlation, a good investment trend, then you have to follow this. And to make things even easier for us, Ray Dalio took all the world data, put them into his model and showed us which countries will do the best. So we don't even have to work hard. We have all the data already presented and laid out. Thank you Ray again. Here are the data. India will grow the fastest. China, Singapore, Mexico, Thailand, Argentina, Korea, Brazil, then the first developed country on the list is United States, which will still show the fastest growth of all the developed countries followed by the UK. If we go down to Europe, Germany, France, Spain, Japan the worst, then Italy and Greece even worse. So before this chart, you will do well in the next 10 years with your portfolio. So just for curiosity, let's look at the individual factors and how they affect what's going on. The growth in the working age population per country, highest in Mexico, India, Brazil, more working age population, more money, more productivity. Worse in Russia, Japan, Germany, Greece, Italy and so. US still the best of developed countries. What you pay versus what you get, the value of working hours, India the highest, China still the highest, culture the best one hardworking is in Singapore. The worst culture to work, Italy, Greece. And the most expensive workers in relation to output are France, Germany, Italy and so on. Education level the worst education is in India but still when compared to what what you get from an educated worker is extremely cheap and that's an advantage India has, China still has it, Thailand, Russia and so on and so on. The most expensive workers is France, Italy, Germany, Europe and so on. Why did I resign when I was paid so well for doing nothing? Hmm interesting. Nevertheless let's go on in-depthness, countries that are lowly in-depth in relation to their potential. India can really invest in their infrastructure. Singapore, Mexico still can take a lot of that for the future. US is still there, still strong so very good. Worst countries, Japan, Greece, Italy, La-La-La always the same Spain and so on. Sum it up back to the figure we already saw the strongest India you have the correct numbers. China, Singapore, US the strongest of the developed countries and then down to Europe with the worst expected real growth rates in the future. So this data is essential when positioning your portfolio in the future. How to approach that? Look at valuations is not just jumping into India and I'll make now a video on about how to invest in India. It's not easy. You see the growth but it's not that easy to invest. It's not just putting my money in Indian companies. You will see in the next video why you need to know how to invest in India. Read the economic principles of Ray Dalio. It's a 305 page report. We'll still discuss a lot of things of the report so please subscribe so that we can interact, comment, share our knowledge. But that report is essential to see how the economic machine works, to see how the economy, global economy works, how it is fit, what are the risks and what are the potential rewards. Because that is what the fundamentals, the productivity is what will mostly influence your return in the long term. So really focus on that. Thank you for watching. Leave your comments. Click like if you like the content. Don't forget to subscribe and I'll see you in the next video.