1928: The Rise of Giants

May 15th.

The sudden appearance of Hongxing United Group has become the hottest financial investment company in New York State.

Its twenty-seven securities investment companies, based in New York State, quickly swept the U.S. stock market with a terrifying attitude.

The U.S. stock market has entered a new bull market since May, causing a group of investors who exited the market early to beat their chests and feel that they have suffered huge losses.

After all, the U.S. stock market has been rising steadily since 1928, with only a few small falls during this period, which are normal fluctuations.

Many people made a lot of money relying on these bull markets, but as time passed to 1929, the rising momentum continued unabated, which panicked a wave of investors, fearing that one day it would suddenly collapse, so they withdrew early.

Unexpectedly, in May, there would be a new round of bull market.

Regarding this bull market, Red Star United Group released an internal analysis report, revealing and summarizing all the driving factors of the bull market, which also made the name of Red Star more and more famous.

From the perspective of future generations, this is just a simple review of stock market results. Anyone can do it in a decent way as long as they have certain experience in financial work.

But now is 1929, and stock market trading is still in a chaotic period. It is the most primitive transaction of telephone calls and filling out forms, and the tricks in it are unimaginable.

The so-called stock salesmen, investment experts and speculators are not even as knowledgeable about stocks as the rookie stock traders of later generations.

It is difficult for most people to understand the rules of the stock market game, let alone such a systematic analysis.

Therefore, this report of Hongxing United Group is a groundbreaking work. Once it was announced, it caused huge waves in the American financial and economic circles.

Let the experts realize that stocks can still be played like this!

It turns out that data can be analyzed this way!

The report highlights three key factors:

First, the economic development of the United States: throughout the 20s, the economic growth rate of the United States exceeded 10% for three consecutive years;

Second, the loosening of U.S. monetary policy: loan interest rates have remained at a low of 5% for a long time, and loan requirements are extremely low. It can be said that individuals can withdraw a large amount of money and then invest it in the stock market;

Third, stock leverage is developed: ordinary investors can get 10 times leverage, while big investors like Rose DeWittbucket can get 50 times leverage. Banks also like the profits brought by stock financing (now stock financing The interest rate is 15%).

There are various signs that the U.S. stock market has an unimaginable amount of hot money, which has also injected infinite vitality into it. The money is rolling inside, and the value of the overflow is very high. Naturally, many people can make money.

This report was made by Ye Luo. It was actually an afterthought analysis, just to make Hongxing United Group appear more professional.

After all, it is a newly established company. The CEO is Hui Xin. It sounds grand. In fact, the employees are only some Chinese salesmen and there is not even a decent office building.

Without building momentum, it is difficult to compete with those securities investment companies with deep foundations.

Unexpectedly, this report caused a huge stir and brought subsequent benefits far beyond Ye Luo's imagination.

In addition, another major feature of Hongxing United Group is penny stock trading.

This is the only major securities investment company involved in the secondary stock trading market.

Compared with the bustling New York Stock Exchange, Amex seems much deserted.

A large number of junk stocks that only cost a few cents per share cannot catch the eyes of investors with a little capital. In addition to making money, buying and selling stocks has also become a part of their daily lives and an extension of their social circles.

Everyone around you is talking about high-priced stocks like General Motors, and they buy mid-to-low-priced stocks that cost at least more than ten dollars per share. But you play those junk stocks. You are obviously not in the same league, and you can't find any common fans to communicate with.

But the size of Amax is actually very large.

Its audience is the lower class people in the United States.

They, like the people in Shanghai's suburban areas, represent the real majority.

I usually work in some ordinary places, which is far, far away from the life that Hoover boasted of a family with an annual income of US$20000, "one car in the garage, two chickens for dinner".

This is what happens to most people. They will not go to the exchange in suits and stare at the blackboard day and night, and talk loudly in cafes.

If you don't look for these people, they will disappear into the crowd and be difficult to distinguish.

And they are all loyal customers of penny stocks.

The penny stock investment profit rate of up to 32% makes Hongxing United Group the only choice for these people.

Of course, when trading penny stocks, the commissions are also ridiculously high.

Under such momentum, on May 15th, the Federal Reserve began to investigate data on banks’ financing of securities firms.

It has to be said that the Federal Reserve in 1929 was even more professional in handling policies than the China Securities Regulatory Commission in 2015.

Affected by the Federal Reserve's investigation, the market closed lower today than yesterday, but trading volume remained normal.

But for sensitive traders, this is a signal.

The Fed's behavior is somewhat similar to the China Securities Regulatory Commission's investigation of securities firms' financing leverage on January 2015, 1.

Ye Luo sat on the sofa and flipped through the newspaper, not missing any news.

He always believed that the subsequent shocks and collapses of the stock market were anticipated and even premeditated by some people. However, even the U.S. stock market in 1929 was a fool's errand to try to control by oneself.

Therefore, the financial crisis that began in 1929 must have been unexpected by everyone and could not have been man-made.

But the key factors driving it to happen are foreseeable.

Many factors are intertwined, and by the time the White House realizes the stock market's problems, there is nothing it can do about it.

The Fed's surprise investigation gave Ye Luo a hint of this.

"Second Young Master, your coffee~" Huixin was wearing a loose maternity dress with a complete vacuum inside, which was not only convenient for her to live in, but also convenient for Ye Luo to enjoy.

Regarding Ye Luo spitting on the baby during pregnancy, Huixin herself was not disgusted at all, not that she was more open-minded. If the other party was the original Li Daren, she would definitely not be happy.

But the other party is the second young master, so that's another story.

When a man captures a woman's heart and fascinates her with his charm, the woman's IQ will plummet, which is commonly known as the love brain.

When Huixin faced Ye Luo, she was in a state of love brain.

She knelt on the ground and looked at Ye Luo flatteringly, like a kitten in heat.

"Ah, thank you." Ye Luo took the coffee, gently rubbed Huixin's head, and continued reading the newspaper.

Huixin rested her head on his lap and asked in a low voice: "Second Young Master, what are we going to do next?"

"Wait someone."

"Waiting for someone?"

"Yes, wait for a friend to take the bait. I believe he should be able to sense it after I send out so many signals."

Huixin blinked, not understanding at all.

At this moment, there was a knock on the door outside the office.

Ye Luo put down the newspaper and chuckled: "Cao Cao, Cao Cao will be here soon." (End of Chapter)