Can I buy 100 lbs of Basmati rice to be supplied to me on 1st of January 2020?
Now 1lb of Basmati rice costs $1. January 1, 2020 the price may become $0.80 or $1.10. I have this money with me Now. Can I buy my future worth of $100 today.
I am making things complicated - but I am not at fault since this mode of thinking of being well off in future feels good now. I can feel bad now if I think had I sold Vanguard in January 1, 2018, then I would be $10000 well off. It is really loss since I did not do it. Had I done it and invested now then I am $10000 richer.
All this is going on my head. I came to know of Options an investment strategy where future is sold.
Options.
Suppose I have a mortgage with the X bank for $100,000. Supposing variable interest rate is going up by 1% every year. X now can sell my mortgage to Y for $105,000 and making profit right now without waiting for 30 years mortgage period. There is another Option. X takes $105,000 investment from Z promising him at higher rate of interest say current prevailing central rate + 1%. X then invest this amount again for whatever purpose even say mortgage.
This is mind boggling exercise of Option for investors. Mind boggling for me. Central Bank as well companies sells bonds and collects money to fund projects. Some are safe and some may not be so safe. 5% of yearly compound interest for 15 years bond may not be realizable when companies do not exist. Government may sell more bonds to finance payment without causing inflation. etc.
People engage in speculation trusting words and various other values they may hold profitable in future.
I am skeptic to any ideas and do not invest except to the extent to fund my current mortgage interest as long as it is more. I have not much faith to secure my future even in near future.
I have spent long hours in this topics for many years but found no way I can secure future or prevent unpleasant future.
unpleasant must I regard as pleasant Now without waiting for future.
I have no Option - otherwise.
Now 1lb of Basmati rice costs $1. January 1, 2020 the price may become $0.80 or $1.10. I have this money with me Now. Can I buy my future worth of $100 today.
I am making things complicated - but I am not at fault since this mode of thinking of being well off in future feels good now. I can feel bad now if I think had I sold Vanguard in January 1, 2018, then I would be $10000 well off. It is really loss since I did not do it. Had I done it and invested now then I am $10000 richer.
All this is going on my head. I came to know of Options an investment strategy where future is sold.
Options.
Suppose I have a mortgage with the X bank for $100,000. Supposing variable interest rate is going up by 1% every year. X now can sell my mortgage to Y for $105,000 and making profit right now without waiting for 30 years mortgage period. There is another Option. X takes $105,000 investment from Z promising him at higher rate of interest say current prevailing central rate + 1%. X then invest this amount again for whatever purpose even say mortgage.
This is mind boggling exercise of Option for investors. Mind boggling for me. Central Bank as well companies sells bonds and collects money to fund projects. Some are safe and some may not be so safe. 5% of yearly compound interest for 15 years bond may not be realizable when companies do not exist. Government may sell more bonds to finance payment without causing inflation. etc.
People engage in speculation trusting words and various other values they may hold profitable in future.
I am skeptic to any ideas and do not invest except to the extent to fund my current mortgage interest as long as it is more. I have not much faith to secure my future even in near future.
I have spent long hours in this topics for many years but found no way I can secure future or prevent unpleasant future.
unpleasant must I regard as pleasant Now without waiting for future.
I have no Option - otherwise.
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