The literary era since 1979

The plane took off from Yenching Capital International Airport, and the writers' delegation visiting the United States officially set off.

Led by Feng Mu, the group was accompanied by Fang Yan, Jiang Zilong, Shu Ting, Bei Dao, Feng Qi, Tie Ning and others.

"Xiao Fang, you are the one who is most familiar with the United States in the delegation. I need your help on this trip."

"Mr. Feng, don't worry."

Fang Yan said that he had already made all the arrangements. When they arrived in Los Angeles, Nie Hualing would lead the members of the Cultural and Educational Foundation to personally greet them at the airport. As for the delegation's travel, accommodation and other issues, they had all been taken care of.

Feng Mu was surprised and delighted. "Is she the Ms. Nie who initiated the International Writing Project?"

Fang Yan said that when he sent the recommendation list for this year's International Writing Program to Nie Hualing, he also informed her about the China-US Writers Conference. Nie Hualing very much hoped that after the conference, the delegation could go to the University of Iowa to give a speech to the students of the International Writing Program.

“That’s great news!”

Feng Mu's eyes lit up instantly.

Then, after listening to the entire itinerary planned by Fangyan, she smiled and patted his shoulder, "Okay! I'm at ease with you doing the work!"

Everyone first arrived in New York and then transferred to Los Angeles. It was already dusk when the plane landed smoothly on the runway.

As the sun sets, the golden afterglow falls on the faces of Nie Hualing, Bai Ruoxue, Luo Dai'an and others, and the banners above their heads flutter in the wind:

“Welcome the Chinese Writers Delegation to the United States!”

Upon seeing such eye-catching words, Feng Mu and his group immediately went over to greet them. The two groups began to get acquainted with each other after introducing themselves in dialect.

Following Luo Daian and Bai Ruoxue's eye signals, Fang Yan followed them to a shiny Cadillac.

He looked it up and down, and the more he looked at it, the more familiar it seemed to him. It was somewhat similar to the convertible that had inspired Le Zong's imagination.

"You're half right."

Rodian smiled and said, "This is indeed the same model as the commander's car, the Fleetwood."

Fangyan was surprised: "Yours?"

Luo Daian said: "It's not me, it's you."

"I?"

Fangyan was very surprised and circled the Cadillac.

The smile on Luo Dan's mouth became longer and longer. "How about it, do you like it?"

Fang Yan shrugged, "Of course, but it's a pity that I can't try it myself."

Luo Daian said: "With your current wealth, there is no need to drive yourself. There are special drivers to serve you."

Bai Ruoxue glanced at the crowd that was getting on the bus one after another and said, "Let's go in first. It won't be too late to enjoy the view on the way."

Fangyan let the driver put his luggage into the trunk, got into the car, looked around, and said in amazement:

"It seems that we made a lot of money from investing in Japanese yen foreign exchange this time."

"It's not just a lot, it's a huge profit!"

Bai Ruoxue excitedly took out a statistical report from her briefcase and handed it over.

Fangyan crossed his legs like a big boss and flipped through the documents.

Since the signing of the Plaza Accord, the Japanese yen has begun to appreciate like a rocket. In just less than a year, the exchange rate has risen from 1 US dollar to 250 yen to 1 US dollar to 138 yen, an appreciation of almost 50%!

According to the dialect, the average leverage when building a position is 300 times. The bicycle can be exchanged for more than just a motorcycle, it can be directly exchanged for a Ferrari. No, it should be the J-20!

In fact, if you use the full 500-fold leverage, or even go a little crazy and increase the leverage of foreign exchange trading to 1000 times, you will earn more.

But after all, a large part of Fangyan's investment money was mortgaged with stocks, real estate, etc. If something unexpected really went wrong and he lost money, his previous actions would not be called strategic planning, but simply reckless. Therefore, he adopted a relatively conservative strategy. Even this strategy made Bai Ruoxue and others who were actually operating the business tremble with fear all the time, fearing that they would be in heaven one second and fall into hell the next.

"Dad asked me to thank you on his behalf. Following your investment portfolio plan, our family's assets have grown by leaps and bounds!"

Luo Dai'an stared at Fangyan who was reading the document, feeling mixed emotions, "So Dad bought this car to express his gratitude."

Fang Yan said: "Thank old Mike for me, he is really very polite."

"No way, compared to the wealth you have brought to our family, this car is not even worth a hair on a cow's back."

There was a burning look in Luodian's eyes. Although Old Mike did not leverage more than a hundred times as aggressively as Fangyan, he also made a lot of money.

How dare he use more than a hundred times leverage for all of them?
But this time, the Chinese man really made the right bet again! He encountered this once-in-a-lifetime big market, and his investment strategy worked completely!

Could it be that, as Old Mike said, he really is the investment god from the mysterious East! He never misses a shot!
But I just can’t understand why a great writer doesn’t read novels but instead pays attention to financial reports?
Just as she was daydreaming, Bai Ruoxue vividly described how worried they were during the period of yen appreciation:

"I really couldn't sleep all night...There were times when we couldn't bear it anymore and just wanted to close our positions and leave..."

"Thank you for your hard work, but don't worry, I won't enjoy this honor alone!"

The dialect put the data report aside.

"Teacher Fang, let's not talk about this for now. What should we do next?"

Bai Ruoxue's words suddenly awakened Luo Dai'an, who was lost in thought. She also wanted to know Fang Yan's next move.

Fangyan leisurely told him the plan he had thought of a long time ago. The first thing was to give part of the money he earned to Buffett and Soros' Quantum Fund, a dark horse fund that stood out on Wall Street. Someone once calculated that if you invested 1969 US dollars in the Quantum Fund in 100, then by 1995, this original capital would have become 200 million US dollars.

"Professional people do professional things."

When Rodion saw his calm first step, he knew that he was not arrogant because of this terrifying success.

"Buffett and Munk will probably agree. They also owe you a favor for speculating in Japanese yen and foreign exchange this time."

Bai Ruoxue agreed very much. This time, it was not only Old Mike who got rich with Fangyan, but also Buffett's Berkshire Hathaway.

Luo Dai'an asked: "So what should we do with the remaining money?"

Fangyan held up two fingers and said, "Divide it into two parts. One part will be used for Japanese yen arbitrage trading."

Luo Daian had only a vague understanding of the financial field. He turned to look at Bai Ruoxue, but unexpectedly, Bai Ruoxue also looked confused and at a loss.

"It is to borrow Japanese yen at a low interest rate, and then invest the funds in high-yield assets, such as stocks, bonds, and commodities. The core of this trading model is to use the interest rate spread between the low interest rate of the Japanese yen and the high yield of other assets to obtain arbitrage income..." Fangyan explained with a smile. Not to mention them, even today's Wall Street elites don't know the Japanese yen arbitrage trading model at all.

This model first appeared in the 90s after the bursting of Japan's bubble economy. Japan's interest rate dropped sharply to hover around 0%, while the US interest rate was around 5% during the same period. The high interest rate gap attracted the investment interest of a large number of Japanese housewives, and thus began the early yen arbitrage transactions. Since "Watanabe" is a common surname in Japan, Japanese housewives who did this were also called "Mrs. Watanabe."

Just like when the international gold price fell in the future, the Chinese aunties bought gold crazily and were thus nicknamed "Chinese aunties".

"Sigh~"

Bai Ruoxue's eyes were full of admiration as she said, "Teacher Fang, I didn't expect that you not only understand literature, but also understand economics and finance so well..."

“Understanding economics and understanding investment are two different things. Economists may not only not understand investment, but may not even understand economics.”

Fang Yan said, "Owen Fisher, Ruoxue, you should have heard of him, right?"

Bai Ruoxue nodded. Irving Fisher is recognized as one of the greatest economists in history. He was also one of the first people to try to apply scientific thinking to health and business research. However, he was stubborn and tried to invest in the stock market during the Great Depression of 1929, and ended up going bankrupt.

"But this yen carry trade will have to wait a year or two before it can be done again."

Fang Yan warned earnestly.

Read the error-free version at 69shuba! 6=9+shu_ba is the first to publish this novel.

Rodian was puzzled: "Why did it take so long?"

why?
Because in 1987, the U.S. stock market will experience a horrific stock market crash comparable to the one in 1929!

It was during this period of downturn in the U.S. stock market that Buffett bought up a lot of good stocks at the bottom, and Fangyan naturally would not miss it.

However, he couldn't say it in front of Bai Ruoxue and Luo Dai'an, so he changed his words:
“The yen’s current interest rate is still too high.”

"You mean there is a high probability that Japan will cut interest rates in the future?"

Bai Ruoxue was keenly aware of this.

Fangyan explained that such a crazy appreciation of the yen will inevitably lead to weak exports. For Japan, a country based on trade, a decline in foreign trade will directly lead to an economic recession. Just imagine, if Japan's manufacturing industry is really destroyed by the current government, how great a sin would that be?
This is not something that can be done by holding a press conference, bowing, and saying "Red Bean Paste Si Ni Ma Sai"...

"It is indeed as Professor Fang said. Since the beginning of the year, the Japanese government has been taking remedial measures."

Bai Ruoxue said that in the first half of the year alone, Japan cut interest rates three times, reducing bank interest rates from 5% to 3.5% to reduce borrowing costs.

"Do you think these companies will expand their scale and operate in a down-to-earth manner after borrowing money?"

Fangyan vaguely remembers the story of "Six Ghosts Making Trouble in Tokyo" in Japan. It was these banks, securities and insurance companies that were not doing their jobs properly that swarmed into the foreign exchange market, aiming for "a small goal of 100 million yen" every day. At that time, a joke was circulating in the streets of Tokyo.

What is the easiest business to make money in the world?
Foreign exchange trading.

All you need to do is buy Japanese yen and sell US dollars, and you can make money with your eyes closed.

I also plan to continue investing part of my money in the foreign exchange market. If you want to get rich, follow me and you will get richer!
…………

The convoy slowly stopped at the hotel where they were staying. Feng Mu and his companions settled their luggage, took a short rest, and then went to the restaurant for dinner.

Fang Yan stayed in the room, ordered food delivery, and then talked with Bai Ruoxue and Luo Daian about the work that needed to be done.

"Teacher Fang, I understand. When I get back, I'll find someone to redecorate the place and install the latest monitors, fax machines, and Bloomberg machines..."

Bai Ruoxue understood the principle that "if you want to do your work well, you must first sharpen your tools." Since she wanted to trade in foreign exchange, she naturally had to update her equipment.

"Just arrange it, I'll reimburse you for everything."

Fangyan turned to look at Luo Daian and asked about the developments of the Hollywood film company.

When sending the recommendation list for the International Writing Program to Nie Hualing, he also gave the script of "Die Hard" to Mike, asking him to translate it into English, and to act as his agent to contact film companies such as Fox, Columbia, and MGM in person.

"There are four companies interested in your script."

Rodian listed: "The first one is Spielberg's old company, Universal, which is also the investor of Saving Private Ryan."

Fang Yan first thought of Universal, after all, they had a previous cooperation foundation, but she looked embarrassed and hesitated:

"Any questions?"

"Universal Films likes the script you wrote, but they are not optimistic about Jack Cheng, the actor you recommended."

Rodion said that Universal Pictures hopes to change the Chinese-American sheriff in "Die Hard" into a white detective.

Fang Yan frowned, "Is it the same for the other three?"

"No, for example, Warner Bros. is very optimistic that Jack Cheng can reproduce Bruce Lee's kung fu glory."

Rodian shrugged.

Just at this moment, there was a knock on the door, and the waiter came in pushing the food cart.

"Put Warner aside for now."

Fangyan curled his lips. Jackie Chan's first two attempts to make it to Hollywood were both in collaboration with Warner Bros. However, it was precisely because Warner Bros.' desire for control was too strong that the producers and directors they inserted prevented Jackie Chan from giving full play to his abilities, leading to the failure of "The Trench" and "Back to the Past".

"The other two are Columbia and Fox."

Luo Daian said: "Although they don't ask to replace Cheng Long, they also have other demands."

Fang Yan took the document she handed over and took a closer look. Columbia had not yet been acquired by Sony and was now owned by the Coca-Cola Group. It was precisely because he was one of the top five "small shareholders" in Coca-Cola that Coca-Cola was willing to help him make connections.

There were quite a few conditions proposed, such as the desire to embed as many Coca-Cola soft advertisements as possible in the film.

Then I turned to "Fox", which did not have any specific requirements, only detailed information about the entire company.

"What about Fox's conditions? Didn't you say it had other demands?"

"Teacher Fang, Fox got a new boss last year, the Australian media tycoon Murdoch."

Bai Ruoxue told the truth: "He hopes to invite you and the people from Jiahe to the group to have a face-to-face chat."

"Well."

Fangyan crossed out "Universal", then ticked "Columbia" and "Warner", and when it came to "Fox", he drew a circle in the upper right corner, "Then let's meet with all three, and start when the Golden Harvest people arrive in the United States." (End of this chapter)