Feng Yu had just returned to Xiangjiang and saw Fu Guangzheng at the airport.
Looking at Fu Guangzheng's expression, Feng Yu knew that he was not here to pick him up at the airport, and something must have happened.
"Feng Yu, crude oil has dropped!"
In one sentence, Feng Yu understood why.
Feng Yu leaned on the seat and asked slowly: "It fell. How much did it fall?"
"Yesterday, crude oil rose to US$78/barrel. I thought it would break through US$80 today, but it started to fall early this morning. It has dropped to US$76, and there is no rebound trend at all."
"oh."
Fu Guangzheng was in a hurry, oh, what do you mean? We all lost money when crude oil fell. Why are you not anxious at all
This time they did not hedge at all. Every cent that fell was a huge loss for them. This dropped by two dollars, how much money will be lost
"Feng Yu, two dollars, it has dropped by two dollars! Should we do some hedging, or simply do the opposite?"
Feng Yu glanced at Fu Guangzheng: "How many times have I told you that although people in finance have to react quickly to some situations, they don't have to panic all the time."
"Crude oil has fallen. Why didn't your uncle and your father-in-law call me? Why didn't He Zhaoji call me? Have you thought about these questions?"
Fu Guangzheng was stunned for a moment: "You mean, crude oil may rise again?"
"It's not possible, it's certain!" The rising trend of crude oil has become unstoppable. Although there are some fluctuations, it does not affect the overall situation.
And let alone a drop of two dollars, even if it dropped by twenty dollars, they would not lose money now. It was just a question of how much profit they made.
Delivering now will indeed allow them to earn a little more, but this will have a serious impact on the price of crude oil and may curb the upward trend of crude oil. After all, they are taking the lead at this time.
As long as they keep these contracts in place, it will strengthen the confidence of many investors. If they deliver the contract, the price of crude oil will inevitably fall rapidly.
If the price of crude oil falls, the U.S. dollar will rise as a result. Feng Yu and others' plans to sell the U.S. dollar and suppress the U.S. dollar will be seriously affected, thereby increasing the losses there.
Now that the price of crude oil is rising, Feng Yu also knows why. It is because the dollar has stopped falling.
The Federal Reserve has discovered that the price of the U.S. dollar continues to fall. Although the decline is not large, it has already had some impact on the U.S. economy.
And they also know that a lot of hot money is selling off the U.S. dollar. If they don't take action, if the decline of the U.S. dollar cannot be stopped, the status of the U.S. dollar will probably be replaced by the very strong euro at this time.
In fact, there have been some comments internationally that the euro will replace the U.S. dollar. After all, the euro is the common currency of the entire European Union and seems to be more stable.
Moreover, many European countries have long wanted to get rid of the shackles of the US dollar and replace the status of the US dollar with the euro. They can gain great benefits.
During the period when the US dollar fell, the euro maintained a very stable exchange rate. Whenever the exchange rate fluctuation was about to exceed a certain range, it would be forced back.
More and more countries use the euro as their standing foreign exchange reserves, and many countries even hold more euros in reserve than the U.S. dollar.
This will affect the status of the US dollar as the number one foreign exchange, and they will never allow it.
Why are people selling dollars and hoarding euros? Isn't it just because of the decline in the exchange rate of the US dollar that countries with large reserves have suffered losses
Anyway, in their view, the U.S. dollar and the euro have similar risk resistance capabilities, and the euro is more stable. Of course, they should store euros. This is what China is doing now, reducing its U.S. dollar reserves and increasing its Euro reserves to reduce the losses caused by the depreciation of the U.S. dollar.
In order to prevent the depreciation of the US dollar, the Federal Reserve decided to raise interest rates, which is to absorb reserves and allow more countries and financial institutions to store US dollars to maintain the status of their US dollars.
Cutting interest rates will depreciate the dollar, and raising interest rates will naturally make the dollar appreciate.
But they ignored one thing, that is, the interest rates at this time are already very high. If they continue to raise interest rates, the subprime mortgage crisis will become more serious.
Therefore, when the price of crude oil fell at this time, Feng Yu not only did not think it was a bad thing, but instead thought it was a great good thing.
"Guangzheng, the Federal Reserve has raised interest rates again, right? Then the economic situation in the United States will inevitably become more severe. This is good news for us."
"The worse the U.S. economy turns out to be, the more money the U.S. government will have to pay when the time comes, and the less funds will be available to stabilize financial markets such as the stock market."
"Think about it, in this way, we will definitely make a lot more money in the U.S. stock market. And the Fed's interest rate hike will make it happen earlier than we expected."
Fu Guangzheng thought carefully about Feng Yu's words. They seemed to make sense.
This time they jointly invest in finance, not only in crude oil, but also in the U.S. stock market. They are also preparing to do something big.
At that time, the financial market in Xiangjiang almost collapsed, and it was not the Americans who did it.
Now that they have the opportunity to take revenge, they will not let this good opportunity pass, not to mention it can bring a large profit.
"Then we just stay still?"
"As long as we don't use higher leverage, then we don't have any risk. There is no need to use those reserves, but it is okay to do some hedging at this time, and it is okay not to do it."
Hedging can reduce losses from falling crude oil, but when crude oil rises, profits are reduced accordingly and costs increase.
Fu Guangzheng smiled coquettishly: "Feng Yu, please don't test me. I really have no talent in this area. Anyway, just discuss with my uncle and father-in-law what you think should be done, and I will execute it."
There are specialties in the industry, and in retail, Fu Guangzheng is very good at it, or in other words, all the children of the Fu family are very good at it. This is also the industry where the Fu family first emerged.
But in terms of finance, Fu Guangzheng's two cousins are much better than him. If he hadn't had a good father-in-law, even if Fu Guangzheng's investments in the mainland were very successful, Fu Rongqi might not have established him as the future helm of the family. people.
Being able to recognize his own strengths and use his strengths to avoid weaknesses is what makes Fu Rongqi very satisfied.
"I will discuss this matter with your uncle and Professor Liang, so you don't have to worry."
In fact, Feng Yu should be worried the most, because Feng Yu invested the most money, not to mention the funds from the He family, Zheng family, etc. If he loses, Feng Yu will also be the one who loses the most.
Seeing that Feng Yu really wasn't in a hurry, Fu Guangzheng was really relieved. So this time when he goes to renew his contract with his European partners, he doesn't have to worry about things here anymore.
…
PS: Our brother Chaoda Baicai has published a book titled "The Invincible Novice Village Chief". If you are interested, you can check it out (to be continued.)