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 Interest is paid because the money isn’t withdrawn immediately.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...
The most difficult writing in the Bible that I’ve ever read is ‘Job.’ In introducing ‘Job,’ the Bible states that he was a rich man of strong faith and the head of a happy family, but it does not explain the origins of the blessings he enjoyed. As he endures indescribable hardships, the reasons for his suffering remain unclear. In other words, he was blessed without explanation and suffered without explanation. The first part of the book of Job, which describes his blessings, contrasts with the latter part, in which he loses everything and eventually recovers for the first time. Yet, there is no explanation for this recovery either. Job’s life serves as a profound example of human experience. For many, the most painful aspect is to enjoy blessings without reason and to lose those blessings without reason. Our lives compel us to confront this reality, and that is the essence of our existence. - Joseph’s “just my thoughts”