MTL - America’s Road To Wealth-Chapter 26 capital frenzy

  Chapter 26 Capital Frenzy

  When David Mellon slowly brewed two cups of coffee with the help of a Michelin star chef.

  Ten minutes have passed.

   Very nervous, but David did not forget what Abel said just now.

   "Wait another ten minutes..."

  So he came out in a hurry, in the "ten minutes" that Abel said.

  He still wanted to know why Abel was so calm.

   When he came out with coffee, David saw Abel lying lazily on the sofa.

   And with both hands, he was reading a thick book.

  David came over with a cup of coffee, and saw that Abel was reading "The Self-Disciplined Trader".

  The author is Mark Douglas, a well-known senior financial practitioner.

   I used to be one of the Wall Street practitioners, but I started writing books in the 1990s.

  I have written a few books, all of which are related to finance or trading, and the results are not bad.

   This "Self-Disciplined Trader" is written by this former Wall Street practitioner for beginners in the financial industry.

  Some American universities also use this book as one of the extracurricular readings of the finance department.

   is one of the introductory books in the financial field.

but

  David glanced at Abel who was reading the book seriously, and couldn't help complaining:

   "This is a book for novices on Wall Street. What's the use of reading it? Don't tell me you're still a novice."

  Abel raised his head, sat up by the way, stretched out a hand to take a cup of coffee from David's hand.

   Then he said plausibly: "I am indeed a novice. I studied art in college, and I can draw, but I don't understand finance. Since I don't understand, of course I am a novice."

   Facing his rhetoric, David was speechless again.

   Well, some of what Abel said, David acknowledged.

  For example, Abel is in finance, especially in many details, many hidden rules and operations.

  It is indeed a novice, the kind that has not even started.

  David thinks this may have something to do with the fact that Albert University is studying art, not business or finance.

   But such a guy who doesn't understand financial details and the rules of many investment products.

  But he has a keen intuition, and in the field of investment and finance, he has the ability like a prophet.

  Since he met Abel, Abel has almost never lost money in every investment.

   Worst of all, just earn slightly less.

   More, all of them are making a lot of money.

  Although most of these transactions are operated by David.

   But David asked himself.

  The investment that Abel entrusted to him to operate is replaced by David himself to decide whether he dares to invest in this way.

the answer is-

   dare not.

  Many investments, David didn't even think about it.

  The most typical one is in early March.

   Abel broke his fortune and even added leverage.

  Very arrogant, shorting the mainstream stocks of Nasdaq that were in full swing at that time.

  At that time, David almost thought that Abel was really crazy.

  Because at that time, whether it was the Nasdaq market argument or the views of the entire American people, it was believed that Nasdaq would rise to at least 8,000 points, or even more.

   Those mainstream Nasdaq stocks will at least double.

  At that time, everyone thought so, and they didn't know that there would be such a thing as the Internet bubble.

  In this situation, David almost wanted to run away and wanted to go back to work at Goldman Sachs.

   Fortunately, before David regained his determination, it didn't take long for Nasdaq to take laxatives.

  Flying down three thousand feet.

   Then in a few months, Abel made $1.5 billion.

  From then on, David really trusted Abel's investment ability with all his heart.

   But now, such an old Wall Street tycoon is screaming wolf.

  At a young age, he already has the title of The Wolf of Wall Street.

  But plausibly said that he himself is just a novice in investment.

  David really wanted to splash the coffee on his face directly.

   But it's just a thought, because this guy has always been like this.

  David had no choice but to say: "The cup you are holding is my Colombia, and this cup is your Brazil."

   But it was too late, Abel had already taken a sip of David's favorite Columbia.

   "It's all coffee. It's all South American. It doesn't matter if it's Colombia or Brazil."

  Faced with Abel’s response, what can David say?

  He had no choice but to hold the Brazilian coffee that he didn't like very much, with a little grassy aroma, and sat next to Abel, looking up at the opposite wall, and Bloomberg provided the latest international foreign exchange market.

   It’s okay if you don’t look at it, just take a look.

  David nearly poured the Brazilian coffee he wanted to drink on his own tie.

   "What? What's going on?"

  David exclaimed in surprise: "What's the situation? Why did it fall so much?"

  The reason why he was so surprised was because it was now on the display screen hanging on the wall.

  For the two currency pairs JPY/USD and JPY/EUR displayed, the above exchange rates have all changed.

  Live data is JPY/EUR 98.2370, JPY/USD 108.3220.

   "You are not mistaken."

  Abel took a sip of David's favorite, Colombian coffee that is said to have a sweet and light aroma.

  He did not drink any sweet and light fragrance, but felt very bitter.

  Because of David, coffee is never sweetened.

   Unlike him, drink coffee with sugar and milk.

   "Just when you went to make coffee. Our losses have been recovered. Now we break even."

  The coffee is not good,

   Stop drinking,

  He put it directly on the table.

   But now, David is in no mood to pay attention to his favorite Colombia.

  He put the coffee on the table, stood up and wanted to enter the safe room, and find out the reasons for the sharp fluctuations in the exchange rate of the yen.

   But it occurred to him,

   Isn’t the master right next to you?

  Instead of going inside to ask those traders, why not ask this one.

   "Why? How could this be?" David looked at Abel.

  Abel shrugged again and told him why.

   "Just now. About five minutes ago."

   "Neon's EFP at 10:43 their local time.

   Released the "All Neon Real Estate Brokers Association", which announced the semi-annual rate of Neon's contracted sales index for existing homes in the first half of the year. "

   "Previous value: -2.3%."

   "Expectation: 1%."

   "Published value: -0.6%."

  The contracted sales index of existing houses refers to the sales data of contracted existing houses, completed or second-hand houses after statistics.

  The index index obtained after weighted processing is a leading indicator of a country's future housing sales activities, and it can provide more reliable information than any existing indicators for the direction of changes in the housing market.

  This indicator is forward-looking, because it takes several weeks after the contract is signed to be included in the existing home sales process.

  The index rose, suggesting that the neon housing market is improving.

  The previous market forecast was up, but the data released now is down.

  Even a 0.06% drop is a drop.

  This means that Neon’s real estate, which has been lost for ten years, seems to continue to lose.

   Then another economic data of Neon Country came out, the latest business activity index released by Neon Central Bank

  【Previous value: 3.3】

  【Expected: 5】

  【Published value: 1.1】

  If the data is above 0, it means that the field is expanding.

   Conversely means recession.

  The sub-item data contained in it include: capacity utilization rate, new orders, raw material payment price, shipment, finished product price, employment index.

  The region's manufacturing exports are mainly concentrated in energy production and electronics.

  The region's manufacturing exports account for a large share of neon manufacturing exports.

   Now in 2000, the manufacturing industry is the leading industry of the neon country's economy, which can reflect the trend of the neon country's economy to some extent.

   This data is far below expectations again, very bad economic data.

  This caused the yen to fall across the foreign exchange market and other currencies to appreciate.

   It was also after the announcement of these two data.

  The international foreign exchange market, which was originally relatively calm, suddenly became turbulent.

  Countless giants, whales, and sharks in the financial field have all woken up from rest or dormancy.

  In a few minutes, trillions of dollars of funds began to fight in the entire foreign exchange market, and countless capitals were desperately anxious.

  If you look further, you will find that countless capital consortiums are shorting the yen at this time.

  As the world's second largest issuance of national debt, Neon's national debt is also being sold off in large quantities.

  The yen fell, and the countries holding Japanese debt lost tens of billions of dollars and suffered heavy losses.

  This forced the central banks of various countries to intervene in the foreign exchange market, causing the money in circulation in the foreign exchange market to reach a horrific number.

  Although the central banks of various countries are very powerful, the capital consortia are not vegetarian.

   A single order of tens of billions was dropped, and the yen, which had shown signs of recovery, fell again, and the central banks of various countries had to eat these orders.

  The capital consortium is laughing and making a lot of money.

   Crazy smashing.

   All the orders accumulated in the past are thrown out at once, even the central banks of various countries can't bear it.

  In this crazy capital frenzy.

  Abel's originally conspicuous $20 billion bill suddenly became inconspicuous.

  (end of this chapter)