"Feng Yu, why did you inform that short selling in the US stock market will be reduced?" Fu Rongqi was a little surprised. Short selling is in their interests, so why should it be reduced? Could it be that Feng Yu had some agreement with someone and wanted to change his strategy
"Uncle Fu, do you remember that during the Asian financial crisis, we thought of a way to slow down the stock market decline? But at that time, we did not adopt it."
Fu Rongqi was still recalling what he had thought of. Professor Liang guessed from the side: "Are you saying that the government issued an order prohibiting short selling?"
Fu Guang was standing next to him with a confused look on his face: "What does short selling mean? Aren't stocks open to the public market?"
At first, he thought that stocks could only be bought up, but later he learned that he could also borrow them first and pay them back later, that is, short selling. But can the government intervene in the stock market in this way
Feng Yu said with a smile: "Any so-called open and fair government will have some administrative coercive measures to protect the interests of the country. This is understandable. Although this move may affect the credibility of the U.S. stock market, the benefits outweigh the disadvantages."
"And the stocks that are prohibited from short selling must not be all, and they should be divided into some ranges. List some of the stocks that are currently short-sold, and short-selling is prohibited. Other stocks such as Microsoft Intel and other companies, they Short selling is not prohibited, if you have the ability, go against them."
"Have you noticed that there are only 3,000 stocks that are frequently traded at this time? Other small companies can just find an excuse to suspend trading, or some companies are obviously making good profits this year. The stocks of such companies are not It will fall sharply, and it may even be chased up by others.”
“As long as they control 10% to 20% and prohibit short selling, it will have a serious impact on our short selling.”
Fu Guangzheng nodded as if he understood, but Fu Rongqi and Professor Liang understood. In this way, if they still borrow a large amount of stocks and prohibit short selling, they will not fall sharply, but they may rebound a little, and then they will lose a lot.
Originally, if they were short selling, they would have to keep selling stocks at a discount to bring the stock price down. Then the larger the price difference, the greater their profit margin.
If they are in a fund company with high leverage, they can make a lot of money. Of course, if this fund company goes bankrupt, you won't be able to make money, and you may not be able to get your capital back.
At this time, some relatively closed stock markets, such as China's stock market, completely prohibit short selling. This is considered a speculative behavior. China's stock market is too young to withstand such a torment.
When doing this kind of short selling, we need to cooperate with some public opinion offensives. For example, if news exposes the company's shortcomings, the company's losses, and shareholders' violations of laws, etc., if we can file a lawsuit with them, the effect will be better, and the company's stock price will plummet in a short period of time.
Feng Yu mainly attacked the Lehman brothers, Bank of America, Merrill Lynch, Morgan Stanley, Fannie and Freddie Group, etc. Among them, the Lehman brothers gave Feng Yu some profits.
The price had originally been brought back to a high price of sixty US dollars per share, but now it had fallen to less than forty US dollars, and it was still falling. They increased their shares and raised another $6 billion, but unfortunately it was not enough.
They want to continue to increase, but the stock price plummets, and no one is willing to continue to buy the stocks they have increased.
Feng Yu has now reduced his short selling, but has not stopped short selling stock index futures. Instead, he continues to use news media to expose the financial difficulties of these financial companies.
These are real news, and Feng Yu is not afraid of going to court with them. In fact, these companies simply do not dare to go to court with Feng Yu, which will make their company's stock price fall faster.
Many companies here have adopted the most extreme method, which is financial fraud to prevent investors from losing confidence in them. Once investors withdraw their capital in large numbers, it will be a devastating blow to them.
Feng Yu's side is decreasing, but there are consortiums that are increasing their short-selling efforts. They have obvious profits, so how can they not make this money
The more the stock market falls, the faster crude oil rises. The higher the sentiment in crude oil, the more funds flow out of the stock market. This has a strong correlation.
Feng Yu couldn't remember when the short-selling ban was issued in his previous life, but he knew very well that it was only temporary and would not last for a long time.
But he no longer needs to sell frantically, because crude oil is obviously rising faster than in his previous life. Feng Yu must focus all his energy on crude oil. Once crude oil is about to fall, he must do his best to increase short-selling contracts. to get maximum benefit.
Even though Feng Yu no longer sells crazily, the U.S. stock market has been turned upside down by Feng Yu.
Feng Yu has found people to disclose many company scandals, and every time, it has been proven to be true. It can be said that many investors believe in the news disclosed by Feng Yu's team.
What's more, Feng Yu has the aura of the god of financial investment, which gives him great influence in the financial market.
At this time, some companies were also shouting through the media, saying that Feng Yu was maliciously influencing the stock market and suppressing their company's stocks with sinister intentions.
But Feng Yu just asked people to ask, did I wrong you? Your company is losing money, and the stock will definitely fall. If we don’t own the stock, what’s wrong
Feng Yu doesn't even need to come forward in person for the war of words, Ralph and others are enough. Feng Yu had never heard of many of the so-called executives of large companies.
But at this time, Paul Allen jumped out again, saying that Feng Yu was using his influence to influence the stock prices of other companies in order to make profits. This was a very unethical speculation.
Feng Yu replied on Twitter this time: Oops, Microsoft’s stock price has fallen again.
Just such a tweet caused Microsoft's stock price to drop 2.3% that day. For a giant company like Microsoft to have such a high decline, especially when it is still making profits, is enough to prove that many investors are not rational at all.
They are too easily influenced by other factors, especially many retail investors, who simply follow the herd investment mentality. When everyone is buying up, I will follow the buying trend. When everyone is selling, I will follow the selling trend. Maybe you won’t make a lot of money, but you won’t lose too much either.
During this period, the price of crude oil has touched the $140 line.
Feng Yu knew that the critical moment had come. At this time, the major crude oil importing countries must have a serious talk with the OPEC organization. If crude oil prices continue to rise like this, they will not be able to bear it!
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