Extraordinary Genius

Feng Yu had just returned to Xiangjiang and saw Fu Guangzheng at the airport.

As soon as he saw Guangzheng's expression, Feng Yu knew that he had not come all the way to pick up the plane. Something must have happened.

“Feng Yu, the crude oil has fallen! ”

In a word, let Feng Yu understand why.

Feng Yu leaned against the seat and asked slowly: "How much did it fall? ”

“Yesterday's crude oil rose to $78 barrels, and I thought I'd be able to break $80 today, so I started falling early this morning, all to $76, and there's no tendency to bounce back at all. ”

“Oh.”

What do you mean, you're in a hurry? Crude oil falls, we all lose. Why aren't you in a hurry?

This time they didn't hedge at all. Every cent they fall, they lose a lot. How much does it cost to fall by two dollars?

“Feng Yu, two dollars, two dollars down! Do we do some hedging or just reverse the operation? ”

Feng Yu glanced at him: “How many times have I told you, the financial man has to react quickly to some situations, but not always panicked. ”

“Crude oil fell. Why didn't your uncle and your father-in-law call me? Why didn't he call me? Have you thought about these questions? ”

Fu Guangguang stunned for a moment: “What do you mean, crude oil might go back up? ”

“It's not possible, it must be!” The upward trend in crude oil is already unstoppable and, although there are some fluctuations, does not affect the overall picture.

And don't say it's two dollars down, it's twenty dollars down, they're not losing now, it's just a matter of profit.

Closing now would indeed make them a little more money, but that would have a serious impact on the price of crude oil and might halt the upward trend in crude oil, which, after all, they were in the lead at the moment.

As long as they continue to retain these contracts, the confidence of many investors can be firmed. If they settle their contracts, crude oil prices will inevitably fall rapidly.

When the price of crude oil drops, the dollar rises, and Feng Yu sells the dollar, suppressing the layout of the dollar will be severely affected, thus making the loss there greater.

Now that the price of crude oil has risen, Feng Yu also knows why, just because the dollar has stopped falling.

The Fed has found that the dollar price has been falling steadily, albeit modestly, but with some impact on the US economy.

And they also know that a lot of the tourist capital is selling the dollar, and if they don't, the dollar falls at an unstoppable rate, then the dollar's position is likely to be replaced by a very strong euro at this time.

In fact, there has been some international rhetoric that the euro is about to replace the United States dollar, which, after all, is a common currency across the European Union and appears to be more stable.

And many countries in Europe have long wanted to get rid of the dollar and replace it with the euro, which they can greatly benefit from.

While the dollar was falling, the euro maintained a very stable exchange rate and was forced back whenever exchange rate fluctuations were approaching beyond a certain range.

An increasing number of countries have used the euro as a standing foreign exchange reserve, and even many have surpassed the United States dollar.

That would affect the position of the United States dollar's first foreign exchange, which they would never allow.

Why do people sell dollars and accumulate euros? Wasn't it because the exchange rate of the United States dollar had fallen that countries with large reserves had lost it?

In their view, anyway, the United States dollar and the euro are almost as resilient to risk, and the euro is more stable, of course, by storing the euro. This is now the case in Huaxia, where reserves of the United States dollar have been reduced and reserves of the euro have been increased to reduce losses from the depreciation of the United States dollar.

In order to prevent the dollar from depreciating, the Fed decided to raise interest rates by sucking up reserves and allowing more countries and financial institutions to store and maintain their dollar position.

Rate cuts depreciate the dollar, and rate hikes naturally increase the dollar's appreciation.

But they overlook the fact that interest rates are already very high at this time, and if interest rates continue to rise, the subprime mortgage crisis will be exacerbated.

So at this time the price of crude oil fell, Feng Yu did not think it was a bad thing, but a big good thing.

“Guangzheng, the Fed raises interest rates again, right? Then the economic situation in the United States is bound to get worse. That's good news for us. ”

“The worse the US economy turns out to be, the more money the US political axe will have to pay, the less money will be available to stabilize financial markets such as stock markets. ”

“Think about it, so we can certainly make a lot more money in the U.S. stock market. And they raise rates in the Fed, which will get us there sooner. ”

Fu Guang is thinking carefully about Feng Yu's words, seems to make sense.

Their joint investment in finance, not only in crude oil, but also on the stock market in the US, is going to do it again.

At that time, Xiangjiang's financial markets almost collapsed. It was not the American people who did it.

Now that they have a chance to get revenge, they won't let go of this opportunity, let alone make a fortune.

“So we don't move? ”

“As long as we don't use higher leverage, we don't have any risks. Those reserves do not need to be used either, but some hedging is fine at this point, and it is fine not to do so. ”

Hedging reduces the loss of crude oil falls, but when crude oil rises, profits decrease accordingly and costs increase?

Fu Guangzheng chuckled: “Feng Yu, don't test me, I really have no talent in this regard. Anyway, what do you think you should do, just talk to my uncle and father-in-law, and I'll do it. ”

There is a specialty in the art industry, and in retail, Fu Guangzheng is very good at it, or he is very good at paying for his children, which is also the first industry to rise.

But in financial terms, Fu Guangzheng's two cousins were much better than him. If he didn't have a good father-in-law, even if Fu Guangzheng's investment in the interior was very successful, Fu Rongqi would not necessarily have established him as the future steer of the family.

Being able to recognize your strengths and avoid shortcomings, this is also where Fu Rongqi is very satisfied.

“I'll talk to your uncle and Professor Liang about this, so you don't have to worry. ”

In fact, Feng Yu should be worried the most, because Feng Yu invested the most money, not to mention which family, Zheng family, etc. If he loses, Feng Yu loses the most.

I was really relieved to see that Feng Yu was really in no hurry. So he won't have to worry about this anymore when he goes to renew his contract with his partner in Europe.

……

PS: Our brother, the super cabbage, opened a book called "The Invincible Beginner Mayor," and everyone's interested in seeing it.