Joseph's "Just My Thoughts"

All investments should be evaluated based on opportunity cost versus time. Are you investing for the short term or the long term? And which option would be more efficient and profitable if you invested elsewhere instead of this? The idea behind recommending long-term stock investments is that high-quality securities tend to benefit from inflation . Inflation happens when the prices of goods increase faster than the value of money. Wouldn’t a producer only make a good if its price exceeds its monetary value? However, if this gap is too large, the consumer experiences volatility. That’s why the efficiency of using money declines because you need money to buy things. This principle explains why stock prices tend to rise over time if you hold high-quality stocks long enough. Therefore, investing is often referred to as investing in time —because over time, it adds value. - Joseph’s “just my thoughts”

Wealth is the state of accumulating added value. Most of us consider money a tool for accumulating value, but there are many other forms in this world. However, all other values are typically expressed as ‘price,’ which is a value compared to goods in terms of money. Therefore, a preconceived notion exists that most means of accumulating value are strictly monetary in nature. Nevertheless, various tools for accumulating value are available, such as jewelry , luxury goods , bonds , and real estate . The value of goods produced by labor is referred to as ‘price.’ Labor can only be directed toward production when the price level is slightly higher than the value of money. Hence, it is normal for prices of goods to continue rising. If they rise excessively, it leads to inflation ; on the other hand, if they fall below their value, it results in deflation . There is a problem between the gaps. - Joseph’s “just my thoughts”

Value in Kind (VIK). Refers to the spot value . We pay money to buy the goods we need, which represents an exchange of goods for currency. However, since money is also a kind of good, it has a relative value that constantly changes. That’s the price. When the price of goods rises, it indicates that the value of money in relation to goods declines. This phenomenon is called INFLATION . If other goods exchanged for goods experience a greater value increase than currency, the seller finds it more advantageous to transact using those other goods rather than currency. We prefer to exchange currency in transactions because it is a government-guaranteed compulsory means of exchange . The right to exchange anything constitutes compulsory circulation power . However, this is the only value of money. If the price of gold is rising significantly, and you can exchange gold for goods, it becomes a better option for producers of goods to trade in gold instead of money. Originally, the pre-currency...

When stating that prices have risen, it signifies that something else has decreased in price. If house prices are up by 10%, then something else indicates that the price is down by 10%. What is this “something else”? It is the value of money –a number derived from converting the value of an inflationary object into a currency. As the prices of goods increase, the value of money decreases correspondingly. If the object is compared in value to something other than currency, then something else that has increased in value compared to the object has depreciated in value. Most values are expressed in currency, so if the price of an object relative to currency rises, the value of the currency is relatively low. Therefore, if you receive cash from sales, wealth is created and preserved only when you exchange it for something else that is appreciating in value compared to cash. If you keep the cash intact, you will undoubtedly become poorer. Wealth is always a relative concept, not an absolut...