After the Federal Reserve cut interest rates, crude oil rose by 3 USD per barrel.
Feng Yu had led his men to borrow large amounts of USD from banks and securities companies. He used high leverage to borrow and sell USD continuously to suppress the USD price.
At the same time, the US and European markets are also responding to the news. Soros must be involved in this.
"Feng Yu, do you still want to continue? We had lost about 800 million USD during this period. "Li Zekai asked.
Of course, they had lost 800 million USD in the currency market, but they had recovered their losses from the crude oil futures market.
But Li Zekai is not satisfied with the ratio of losses to returns.
During the Asian Financial Crisis, speculating on Thai Baht is much faster than this, and the profits are higher.
"Continue. Since we had promised Soros that both parties will lose 1 billion USD, we will follow our promise. We cannot control if they keep their promises. But since we had promised, we must do it. "
Feng Yu can still recover his losses by investing another 200 million USD. Feng Yu knows what Li Zekai is worried about. He is worried that Soros will stop suppressing USD, and Feng Yu and his men will be the main force.
Feng Yu had done this in the past.
"Feng Yu, suppressing the USD doesn't seem to be effective. Although crude oil prices are rising, the leverage we are using is not high, and the profits are much lower than expected. "Li Zekai said.
The USD is not like Thai Baht. The USD is issued in large quantities, and the rest of the world can use it. When the US dollar is being suppressed, some countries might think of ways to pull up the USD.
Feng Yu laughed and crossed his legs. "That's right. Even if the USD depreciates, it will not depreciate by too much. It will not be like Thai Baht, which depreciated by 40% or even 5%. It will be very difficult."
"But we need this attitude to let others think that USD will depreciate by a lot, and they will exchange their USD for other currencies or commodities."
"This way, more money will enter the financial markets, and it will form a trend to push up crude oil prices."
Li Zekai frowned. "Feng Yu, why do I feel that the stock market is rising faster than crude oil? Shouldn't we earn more by investing in stocks or the stock index? "
Everyone had exchanged their USD for other commodities, and many of them had entered the financial market. But most of them had entered the stock market and not the futures market. Even if they had entered the futures market, there are many other commodities, and they might not be buying crude oil.
"You also think the stock market is better? Have you ever thought about what would happen if the stock market plunged? "Feng Yu asked.
"The stock market plunged? What's the reason? "Li Zekai knew Feng Yu would not say this without thinking. Since he said that, he must be confident that the stock market will crash.
"There are many reasons for a stock market crash. The most common one is that a certain industry has negative news that affects the stock prices of the entire industry, causing many investors to flee in panic, causing the market to plummet.
"What I am best at is to expose the fake prosperity of a certain industry. I will use a company as the foundation to affect the reputation of the entire industry. If the company loses the trust of the investors, it will have a serious impact. "
"Next, we will go to the US stock market and buy property shares. After that … … prepare to dump the shares!"
… …
Soros sat in his office chair and looked at his computer screen. It is more convenient to trade now, and everyone's efficiency had increased.
Although some people from the Quantum Fund had left in the past few years, the remaining people were elites, and all of them listened to Soros. They could carry out Soros's requests well.
Hong Kong had been dumping their USD to suppress the USD exchange rate. Of course, there are some effects, but not much.
Soros had also cooperated with the US and Europe to suppress the USD exchange rate to stimulate people to exchange their USD for other commodities.
But Soros had not only invested in crude oil futures. He had also invested in stock index futures and other futures.
Especially stock index futures. This is rising faster than crude oil futures, and Soros and his men had been pushing up the stock index. Soros's profits had increased.
To Soros, Feng Yu's investment is not as good as his investment structure.
When the USD depreciates, the financial market will be affected, and the prices of many financial products will rise.
But Feng Yu had only bet on crude oil futures and did not even buy Gold, which was a hard currency. This was a serious mistake.
Quantum Fund's investment model is a three-dimensional investment model. They do not focus on a single commodity or currency. Instead, they will combine the investments of different products to form a whole. Through the mutual influence, they can make more profits.
Indeed, if crude oil prices rise by a large margin, Feng Yu might get higher profits than Soros. However, putting all the money in one place was the biggest taboo in large investments.
But Soros's impression of Feng Yu is a genius in the financial market and is good at investing. During the Asian Financial Crisis, Soros had seen Feng Yu's investment style, and it is very similar to his three-dimensional investment model.
Since Feng Yu is also good at investing, there is no reason for him to bet all his money on crude oil futures. This is not something Feng Yu will do.
Unless Feng Yu has his sources, and he can tell crude oil will rise faster than stock index, gold, and other futures!
"Drucken, come to my office for a while."
Drucken Miller came over to ask what Soros wants.
"Drucken, don't you think Feng's investment is weird?" Soros asked.
"It's weird, but it's not too weird. We had made similar decisions in the past when we think a commodity will rise and bet most of our funds on it. Also, there are linkages between industries, and other products will also affect crude oil prices. "
"Also, Feng and the rest are making money, but they are not making as much as us. Even if crude oil prices might rise, our decision is not wrong, and it is safer. Our investment model is low risk and high profits, and it's reasonable. "
Drucken Miller also felt it is weird. Feng Yu seems to have the intention to gamble. But this is also the way many fund companies choose to invest. If they think an industry is good, they will invest in it to get the highest profits.
Is this the case? Soros has his doubts, but he did not notice crude oil will rise sharply, and the increase will not be as high as the stock index.
"Alright. Continue to dump USD. Let me know when you lose 1 billion USD."
Since Soros had kept his promise, he will have a closer relationship with Feng Yu. If Feng Yu has news of crude oil prices rising, Soros will change his investment priorities.
Hmmm … … after spending 1 billion USD, Soros can give Feng Yu a call.
… …
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