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Just my thoughts #0768

False equivalency: A misleading comparison where the comparison targets are forcibly balanced while ignoring relevant differences. For example, claiming that banning guns also requires banning cars. Both cause harm to human life, but guns are designed for lethality and are closely linked to crime, whereas automobiles are meant for transportation and sometimes cause fatalities in traffic accidents as side effects. Comparing these two as if they are the same constitutes a false equivalency. Similarly, saying that apples and oranges are the same because they are both fruits and round is also a false equivalency. We are easily misled by such false comparisons. - Joseph’s “just my thoughts”

Just my thoughts #0616

In markets that trade natural products, such as agricultural, fishery, energy, and commodities markets , oversupply or at least excess supply causes problems. When supply is high, prices plummet, causing significant damage to producers; conversely, when supply is low, prices rise, and consumer sentiment diminishes. As a result, both suppliers and consumers suffer. The challenge is that it is difficult to intentionally set the level of production. Because of this, a futures market develops in situations where we have to accept what nature provides. Futures trading is a method in which a producer and a distributor agree in advance to trade the price of an item to be produced in the future, without knowing the exact quantity yet. In other words, in futures trading, the focus is on price rather than quantity. Since it is challenging to stock items that require freshness, futures trading offers advantages by allowing transactions to be made in advance. However, if supply fluctuates too m...

Just my thoughts #0224

There are markets where demand generates supply, while there are markets where supply must generate demand. Las Vegas, a city in the middle of the desert, is a business structure that creates demand from supply. Supplying gambling rooms simultaneously generates the operating income of the gambling room and profits from hotels, transportation, restaurants, and shopping. In a poor business environment, you need to review the essence of your business. If you try without structural change, you will likely tire, and it isn’t easy to expect improvement. - Joseph’s “just my thoughts”