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 Interest is paid because the money isn’t withdrawn immediately.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...
Years of research by cognitive psychologists indicate that creative individuals are influenced more by situational factors than by their inherent talent. Essentially, being able to navigate a creative context is more crucial than possessing creative skills. Creativity does not exist in isolation; it is shaped by the surrounding environment and context. People are influenced more by their circumstances than by personal abilities. To reach their objectives, individuals must understand the necessary tools and techniques. However, concentrating solely on these tools can lead to a loss of perspective on the ultimate goals. Establishing clear goals can transform the environment and context in which one operates. - Joseph’s “just my thoughts”