Chapter 26

Chapter 26: The madness of the capital

As David Mellon slowly brews two cups of coffee with the help of his Michelin-starred chef.

Ten minutes have passed.

Very worried, but David still did not forget what Abel had just said.

"Wait another ten minutes..."

So he quickly left, within "ten minutes" of Abel's notice.

He still wanted to know why Abel was so calm. When bringing out the coffee, David saw Abel lying lazily on the sofa.

And with both hands he was reading a thick book.

David arrived with a cup of coffee and found Abel reading "The Self-Disciplined Trader."

The author is Mark Douglas, a famous seasoned financial expert.

I'm a Wall Street activist, but I started writing books in the 1990s. I've written a few books, all related to finance or trading, and the results aren't bad.

This book "The Self-Disciplined Trader" is written by a Wall Street alum for those just starting out in the financial industry.

Some universities in the US also use this book as one of the extracurricular readings for finance departments.

is one of the introductory books in the field of finance.

But

David glanced at Abel who was seriously reading a book and couldn't help but complain:

"This is a book for those new to Wall Street. What is the purpose of reading it? Don't tell me you're still new.

Abel raised his head, calmly sat down, reached out to take the cup of coffee from David.

He then said reasonably: "I'm really a newbie. I studied art in college and I knew how to draw but I didn't understand finances. Since I don't understand, of course I'm a newbie.

Faced with his rhetoric, David was once again speechless. Well, David realized some of what Abel said.

For example, Abel works in finance, especially in terms of many details, many rules and hidden activities.

He's definitely a newbie, the type who hasn't even started yet.

David suggests this may have something to do with the fact that Albert College studies art, not business or finance.

But someone who doesn't understand the financial details and 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 wondered.

The investment that Abel entrusts him to manage will be replaced by David himself to decide whether he dares to invest in this way or not.

the answer is-

afraid.

Many investments, David did not even think about.

Most typically in early March. Abel broke his fortune and increased his leverage even further.

Very arrogant, shorting major Nasdaq stocks that were highly volatile at the time.

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

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

These traditional Nasdaq stocks should at least double. At that time, everyone thought so and they did not know that there would be an Internet bubble.

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

Fortunately, before David regained his resolve, Nasdaq quickly took a laxative.

Fly down three thousand feet.

Then, in just a few months, Abel made $1.5 billion. From that moment, David truly believed in Abel's investment ability with all his heart.

But now, an old Wall Street tycoon is crying like a wolf.

From a very young age, he carried the title of Wolf of Wall Street.

But it can be said that he himself is just a beginner in investing.

David really wanted to smear coffee straight on his face. But that's just a thought, because this guy has always been like that.

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 wine.

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

Faced with Abel's reaction, what could David say? He had no choice but to hold a cup of Brazilian coffee that he didn't like very much, that smelled a little grassy, ​​sat next to Abel, looked at the opposite wall, and Bloomberg provided him with the latest international foreign exchange markets.

It's okay if you don't watch it, just look.

David almost spilled the Brazilian coffee he wanted to drink on his tie.

"What? What's going on?"

David exclaimed in surprise: "What's the situation?" Why do you fall so much? »

The reason he was so surprised was because it had now appeared on the screen on the wall.

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

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

"You are not wrong."

Abel took a sip of David's favorite Colombian coffee, which was said to have a sweet, mild aroma.

I don't drink light sweet perfume but find it very bitter. Thanks to David, coffee will never be sweet again.

Unlike you, drink coffee with sugar and milk.

"Just when you were about to make the coffee. Our losses have been recovered. We are now breaking even."

Coffee is not good,

Stop drinking alcohol,

He placed it directly on the table. But now David is not in the mood to pay attention to his favorite Colombia.

He put the coffee on the table, stood up and wanted to go into the safe to find out the cause of the sharp fluctuations in the yen exchange rate.

But he suddenly realized,

Isn't the owner right next to you?

Instead of going inside and asking these sellers, why not ask this person.

"For what? How is it possible? »David looked at Abel.

Abel shrugged again and explained the reason.

"Just now. About five minutes ago."

"Neon VET at 10:43 a.m. local time.

The publication of the "All-Neon Association of Real Estate Brokers", publishes the semi-annual rate of Neon's contract sales index for existing homes in the first half of the year. "

"Previous value: -2.3%."

"Expectation: 1%."

"Published value: -0.6%."

Existing Contract Sales Index refers to sales data of existing homes under contract, completed homes or pre-owned homes after statistical analysis.

The resulting weighted index is a leading indicator of future housing sales activity in a country and can provide more reliable information than any existing indicator of the direction of change. housing market changes.

This indicator is prospective because it takes several weeks after contract signing to be integrated into the process of selling an existing home.

The rising index shows that the neon real estate market is improving.

Previous market forecasts were optimistic, but the data released today is bearish. Even a 0.06% decrease is a decrease.

This means that Neon's real estate has spent ten years seemingly continuing to lose money.

Next, more economic data from Neon Country was released, the latest business activity index was released by Neon Central Bank.

[Previous value: 3.3]

[Estimated: 5]

[Declared value: 1.1]

If the data is greater than 0, it means the field is expanding.

On the contrary, it means recession.

Sub-category data which includes: capacity utilization rate, new orders, raw material payment price, shipment, finished product price, employment index. The region's manufacturing exports are mainly focused on energy and electronics production.

The region's manufacturing exports account for a significant proportion of neon lamp manufacturing exports.

Currently, in 2000, the manufacturing industry is the main industry in the neon country's economy, which may reflect the trend of the neon country's economy to a certain extent.

This data was again much lower than expected, the economic data was very poor.

This causes the Yen to fall in value on the foreign exchange market and other currencies to increase in value. That was also after the publication of these two data.

The international diplomatic market, which was relatively quiet, suddenly became chaotic.

Countless giants, whales and sharks in the financial sector have all awakened from their slumber.

In just a few minutes, billions of dollars of funds began to scramble across the entire foreign exchange market, and countless capitals were extremely worried.

If you look further, you will see that countless capital corporations are currently shorting the yen. As the world's second largest sovereign debt issuer, Neon's sovereign debt is also sold in large quantities.

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

This forced central banks of many countries to intervene in the foreign exchange market, causing the amount of money circulating in the foreign exchange market to reach a staggering number.

Even though the central banks of different countries are powerful, corporations are not inherently vegetarian.

Only one order worth tens of billions was abandoned. The yen, which had shown signs of recovery, decreased in value, and the central banks of many countries had to eat these orders. The corporation laughed and made a lot of money.

A crazy accident.

All orders accumulated in the past were immediately rejected, even the central banks of various countries could not stand it.

In this crazy capitalist frenzy.

Abel's $20 billion banknote, initially visible, suddenly became blurred. (end of this chapter)