America's Road to Wealth

Chapter 26 Capital Frenzy
When David Mellon slowly brewed two cups of coffee with the help of the Michelin star chef.

10 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 actually still wanted to know why Abel was so calm.

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

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

Holding his coffee, David walked over to take a look, 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 90s.

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

This "Self-Disciplined Trader" was 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.

It 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 newbies 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, and stretched out a hand to take a cup of coffee from David's hand.

Then he said convincingly: "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."

Faced with 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 unspoken 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 to act like a prophet.

Since he knew 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.

Lots of investments that David didn't even think about.

The most typical, than in early March.

Abel broke his fortune and even added leverage.

It was very arrogant to short 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 [-] points, or even more.

Those mainstream Nasdaq stocks will at least double.

At that time, everyone thought so, and did not know that there would be such a thing as the Internet bubble.

In this case, 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 $15 billion.

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

But now, such an old Wall Street tycoon is yelling.

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

But he plausibly said that he himself was just a novice investor.

David really wanted to splash the coffee in his hand directly in his face.

But just thinking about it, 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 not to look at it, just take a look.

David almost spilled 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 of the display screen hanging on the wall now.

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

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

"You read that right."

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

He didn't drink any sweet and light fragrance, but felt very bitter.

Because of David, the coffee is never sweetened.

Unlike him, he drinks coffee with sugar and milk.

"While you're making coffee. We've made our losses back. Now we're breaking 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 go into the safe room to find out the reasons for the sharp fluctuations in the exchange rate of the yen.

But suddenly it occurred to him,

Isn't the master right next to you?
Instead of going inside and asking those traders, it's better to 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 43:[-] their local time.

The "All Neon Real Estate Brokers Association" was released, and the half-year rate of Neon's contracted sales index for existing homes in the first half of the year was announced. "

"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.

The metric is forward-looking because it takes weeks after a contract is signed to be factored into existing home sales.

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, looks like it will 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.

Otherwise, it means recession.

The sub-item data contained in it include: capacity utilization, new orders, prices paid for raw materials, shipments, prices of finished goods, and employment index.

Exports of manufactured goods from the region are mainly concentrated in energy production and electronics.

Manufacturing exports from the region account for a large share of neon manufacturing exports.

And 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 is also after the release of these two data.

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

Countless giant crocodiles, big whales, and big sharks in the financial field have 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 vegetarians.

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 $200 billion bill suddenly became inconspicuous.

(End of this chapter)