Trust is an important resource in our interpersonal relationships. It is a prerequisite to be able to put yourself in the hands of other people. But when can we truly rely on others and place our trust in them?
In psychology and education, trust is a topic of intense research, as it is critical to the development and stability of relationships. This is not just about trust between people, but also about trust in institutions and social systems.
The mother of 20-year-old Tyre Nichols, who was shot and killed by a police officer last November, has filed a lawsuit against police authorities. The incident occurred during a car chase in North Carolina, when Nichols jumped out of his vehicle and tried to flee.
According to police, Nichols pulled a gun, which led to the officer opening fire. However, the family of the deceased claims Nichols was unarmed and shot by the officer in ambush. The officer body camera footage was released recently and has led to a nationwide debate about police violence.
The traditional understanding of investment strategies often consists of a mix of liquid securities and stocks that can be easily bought and sold to quickly respond to market changes. In recent years, however, a trend has developed toward alternative investments that focus on long-term returns and diversification. In particular, illiquid investments such as private equity, infrastructure and alternative credit strategies are the focus of institutional investors and high net worth individuals.
The question is: are illiquid strategies superior to liquid investments? There are several arguments in favor of higher returns and a more stable portfolio through alternative investments. On the one hand, they offer higher returns than traditional investments, as they have more risks and time constraints. On the other hand, they are often independent from the fluctuations of the general markets and thus offer portfolio diversification. This diversification can be beneficial as it takes the pressure off the portfolio of stocks and bonds, which tend to be influenced more by similar factors.