Rebirth 79: I opened a bank in the United States

Chapter 92 May Change Volker

After looking at the top of the screen and confirming that the program he was watching was a real-time broadcast on the TV station, Carter rubbed his eyes again and looked at the gold price on the market again.

$534.7 per ounce.
Compared with silver, which has nearly doubled in one and a half months, gold, which once rose soaring, is no longer the darling in the eyes of the economic media.

Accompanied by the TV reporter's boastful introduction to silver, Carter looked at the price of gold and habitually touched a cigarette from the coffee table in the living room.In the smog, lost in thought.
As mentioned earlier, gold is a weapon against inflation.According to the normal rhythm, as long as the current inflation in the United States is not contained, the price of gold will continue to rise.From about $500 an ounce to the current price of about 534 an ounce, it also proves that gold is still rising.

Only due to the sudden emergence of silver recently, the rise in gold seems inconspicuous.In the face of the wildly rising silver like eating gold carats, the 6.94% increase in gold looks like a harmless little transparent to humans and animals. I can't even remember that there is such a thing.

Then the problem is coming!

Reminiscent of the scene where he was terrified by Volker's words of "moderately increasing the money supply", Carter couldn't help thinking.Even a person like myself who knows the future is frightened by Volker, so what about someone else?
If other people hear Volcker saying that the money supply will be "moderately" increased, will they feel that inflation will continue?And if inflation continues to rise, will the price of gold follow suit? !
After all, in the context of high inflation, the more money is released, the less valuable it is.Investing in gold for hedging is a very common way of value hedging during periods of high inflation.

In other words, if most people haven't realized Volcker's true intentions now, the price of gold will continue to rise.And compared to the abnormal rise of silver, gold is more secure.

Because this is not who is operating the market at all, it is purely the general trend of the market, the general economic trend determines that it must go up!If the inflation rate does not fall, gold will not fall for a day!
So the question now is to understand the market's reaction to Volcker's measures.If you see signs of distrust, that is, if the market still firmly believes that inflation will continue, you can invest in gold now!
In particular, the market's attention is now focused on silver.Buying the gold futures contract by yourself should not attract attention, and it won't be locked in some transactions not long after the purchase, as Julian said to himself last time.

"Hello? Julie, are you busy now? Do you have time to chat?"

Thinking of this, Carter, whose deposit was almost cleared, couldn't sit still.Picking up the phone at home, he called Julian.

"Oh, it's Carter? I changed the phone, and I'm still wondering who this is?"

"Hahaha, this is my phone number at home. Isn't this the Thanksgiving holiday, why not rest at home. I was just thinking, will you be in the office, why don't you spend time with your family, take a good two days off?"

"Hey, don't talk about it. Now the market looks the same every day. If you don't stare at it, you don't feel at ease. When the market stabilizes, let's rest for a while. Let's not talk about this. You are calling to ask about stock acquisitions. the situation?"

After a wry smile and a long sigh, Julian's voice returned to normal and professional.

"The situation of stock acquisition is not bad. Adm bought 4000 shares at about $60 per share, and spent 24. amd, $25, the same 4000 shares, spent 10. The remaining 3400 bought Intel, [-] However, Intel just conducted a new stock split in April, two shares split into three shares, and Intel initially issued more shares, so the actual weight of the purchased Intel shares is lower than the other two. "

The so-called stock split, two shares split into three shares, means that the original two shares are split into three shares.The interests of the original shareholders have not changed much. For example, a shareholder who originally held [-] shares now has [-] shares.But the weight is still the same as the original [-] shares, because the number of your shares has increased, and the number of others has also increased.

It's just that the value of a single stock will become lower due to the split, but at the same time the transaction becomes more flexible.It turned out that when there were [-] shares, shareholders wanted to sell one-third, which was a little troublesome, and the price of a single share was relatively high, which was not conducive to retail investors buying.

After such a split, shareholders can sell their stocks, and retail investors can buy them.Therefore, the stock split is an operation method to increase the trading volume and push up the stock price in disguise.

This is not difficult to understand, but Carter's current focus is not on stocks.

"Okay, no problem, I believe in your ability, Juli. This time I'm calling, I want to ask you, what do you think of the Fed's current actions? Especially, interest rates and money supply."

Both adm and Intel have been listed relatively early, and their stock splits have been carried out many times.The shares I bought now are not even a fraction of the total shares of others, so I don't need to worry about it at all. Although amd was only listed on the New York Stock Exchange, they issued shares as early as 72. However, due to the late listing and the fact that the initial stock issuance was only 52.5 shares, even after two stock splits, now The total number of shares is only about 118 million, but these 4000 shares account for about 0.34% of amd's shares.

If calculated based on AMD’s highest market value of US$1977.5 billion in the future, the investment of about US$10 will bring more than [-] million returns to itself in more than [-] years.
It's outrageous. Open the door to Outrageous. Outrageous is home!Although this is only a very theoretical value, it still made Carter feel the horror of the advance layout and the real cruelty of the time traveler's cheat!
"You don't want to talk to me about this matter. I just wanted to talk to you. Volker's recent behavior is a bit confusing, which is too abnormal. According to my understanding, he is not a person who is easy to compromise. So the last When the Federal Reserve announced this news last month, I didn’t mention it to you. I think he may have compromised temporarily in order to cope with the pressure from the White House.

Just as Carter was secretly clicking his tongue, Julian's confused voice came from the receiver.When he heard the words "Cheat that Carter in the White House", Carter laughed even more.It seems that many people are fooling our Comrade Renzong now, there are not many Dovorkes, and there are many less ones.Did not interrupt Julian because of this, Carter continued to listen carefully to what he said later
"But recently, the increase in the discount rate and the change in the federal funds rate. It stands to reason that the rising interest rate should prove that my judgment is correct. Volcker wants to engage in currency contraction and reduce market demand. It is strange that The reason for this is that an increase of a few tenths of a percent is a drop in the bucket compared to the current inflation rate that is about to exceed [-] percent, and it will not have any curbing effect at all."

"It's not so much that Volcker is tightening, it's better to say that this is just a normal temporary increase. I'm a little uncertain now. After all, there is still a big difference between the Fed chairman and the Fed president. Perhaps, Volcker changed when he became Fed chairman"

(End of this chapter)