Many people in our society invest in bonds. Perhaps you, reading this article, have invested in bonds at least once and are still investing now. Bank deposits are a form of bonds, just not labeled as ‘bonds.’ When you deposit your money in a bank, the money isn’t considered bank money. Interest is paid because the money isn’t withdrawn immediately. When you withdraw your deposited money, the bank must return the principal plus interest. This is essentially a bond. However, the only reason this differs from bonds as an investment asset is that these bank deposits are not traded on the market. If bank deposits were traded publicly, the interest rate would be evaluated in comparison with other deposits, even if the principal remains unchanged. Valuation reflects opportunity cost. This is the transaction value of bonds. When goods or assets are traded in the market, their value is re-evaluated. The core of value is comparison, and the tool for valuation is opportunity cost. That’s why CEOs...
Some people live because of ‘doubt,’ others because of ‘confidence,’ and some because of ‘guess.’ Often, people make a living based on the positive factors we think of, but the opposite is also true. In fact, there are instances where positive factors threaten livelihood . Some people thrive on accuracy and certainty , while many live amid the unsettled and uncertain . The world is not always bright. There are many different ways to live and principles to follow. What do I do for a living? - Joseph’s “just my thoughts”