Kirilenko and the rest were confused after hearing Feng Yu's analysis.
"Feng, is it good news for the US Government to take over Fannie and Freddie?"
Feng Yu felt that he had wasted so much time talking to them. These few people's financial sense was too bad!
"This means that Fannie and Freddie will drag down the overall economy of the United States. The financial crisis in the United States is bound to break out completely, which will lead to high-energy negative news in the financial market."
Kirilenko and the rest can understand the word 'negative'. That means the financial market will crash.
Fu Guangwei is in disbelief. "Brother Feng, the US stock market had fallen so much, and it is going to crash again?"
Although the US stock market had fallen a lot, the US had invested the most, and the stock market had not crashed yet.
Lehman Brothers' bankruptcy had already made the US stock market jittery. If there is another major negative news, the US government will not be able to hold up the stock market.
Not only the stock market, but crude oil, gold, and other commodities will also crash.
Although there are many opportunities when bad news is everywhere, most investors will choose to hold on to their money and not those financial products.
That's why once the US Government takes over Fannie and Freddie, the financial market will be affected, and crude oil and the stock market will crash.
Fu Guangzheng stepped on Fu Guangwei's foot under the table and laughed. "Feng Yu, does that mean our crude oil futures will enter a period of rapid profits?"
Fu Guangzheng rolled his eyes. You can ask me if you don't know anything, but why are you doubting me?
You can doubt others, but how can you doubt Feng Yu? Is Feng Yu wrong about the financial market all these years?
Why are you talking so much nonsense when you are making money?! Look at Kirilenko and He Laosan! Learn from them!
"Of course, crude oil prices are not falling fast now. Many people think crude oil will fall to around 80 USD, and it will return to a stable range of around 10 USD."
"But if there is a high energy negative, then the price of crude oil will continue to fall, falling below the true value of crude oil, making our profits even higher!"
50 to 60 USD. This is what everyone thinks of the real value of crude oil. But Feng Yu had told them that the US had started to produce shale oil, and the cost of shale oil is more than 60 USD. The reasonable price of crude oil should be 70 to 80 USD.
However, when the financial crisis broke out, this so-called reasonable price would definitely fall. There was no doubt about that.
Kirilenko asked. "Feng, didn't you say that the stock market crash will stimulate investors to invest in other financial products? Will the hot money enter the futures market when the stock market crash?"
Fu Guangwei also had a curious look on his face. He was also thinking the same thing.
Feng Yu shook his head. "Under normal circumstances, it's normal to think that way. But if this bad news affects the entire financial market, then it will lead to a full-scale decline, and a real financial crisis will erupt. "
"Are you willing to invest when there's a chance that these investments will lose money? Do you think it's safer to keep the money in your hands? Will you sell off your financial products at this time? "
"What about gold?" Kirilenko asked. "Shouldn't everyone be buying gold at this time? Does this mean that the price of gold is going to soar again? "
Gold is a true international currency. When the prices of other products may plummet, and even the US dollar is depreciating, there will definitely be a lot of people investing in gold, right?
Why did Feng Yu say gold prices will also fall?
"Panic will cause many people to sell their gold as well. Also, many investors who have suffered losses in other areas will sell their gold to make up for their losses and tide over the difficulties. "
"But what you said makes sense. When other products are unreliable, and even the exchange rates of the US dollar and euro are falling, there will definitely be a lot of people buying gold, and the price of gold will definitely rise."
"However, the rise in the price of gold will inevitably be accompanied by a wave of decline in the price of gold. Only then will there be a slow increase."
"That's why gold prices will also fall. Don't think that just because gold prices are rising now, you all will buy gold. In a few days, gold prices will plummet."
"When gold prices fall to a certain level, that will be the time for us to buy gold. However, at that time, the price of crude oil will definitely recover, and the extent of the recovery of crude oil will definitely exceed that of gold. After all, crude oil prices will not be lower than reasonable prices. "
That's why even though Feng Yu thinks gold prices will rise, he is not going to invest in gold.
That's why even though Feng Yu felt gold prices will rise, he does not want to continue investing in gold. It's better to invest in crude oil first.
Once he had earned enough from crude oil, he would invest in gold. This way, he would be able to make good profits.
"Do you all know why I said crude oil prices will fall so fast? Think about OPEC. "
"Are you talking about their increase in production?" Fu Guangzheng asked.
"That's right. But it's not only because of their increase in production. Don't forget that UAE and other countries are investing in infrastructure, and they need a lot of funds. They are crazy about the World's Tallest Building and want to use it to boost their tourism industry. "
To Feng Yu, this is similar to Hua Xia's situation in the past. Although the property market here might not necessarily collapse, borrowing money to invest in this, and playing such a big game, was simply idiotic.
Infrastructure will take a long time, and it will take a long time for them to recoup their funds. This will increase their interest. To repay their debts, they must increase production and extract more oil to repay their debts. Then, OPEC's actual increase in production will be higher than their planned increase.
"When those countries increase their production, crude oil prices will fall, and the falling crude oil prices will stimulate them to increase production to maintain their income. This is a vicious cycle."
"Also, this financial crisis will cause many financial institutions to suffer losses. Will they try to recover their losses in other ways? Shorting crude oil futures is a good choice, right? "
In Feng Yu's previous life, if it's not because of those financial institutions, it will not be because of the negative news of the financial crisis.
In this life, with Feng Yu and the rest's help, crude oil will surely fall, and the price might be lower than in Feng Yu's previous life!
"Anyway, let's wait for the good news!"
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