Chapter 1700 Crude Oil Falls

Feng Yu had just returned to Xiangjiang when he saw Fu Guangzheng at the airport.

Seeing Fu Guangzheng's expression, Feng Yu knew that he didn't come specially to pick up the plane, and something must have happened.

"Feng Yu, crude oil has fallen!"

In a word, let Feng Yu understand why.

Feng Yu leaned on the seat and asked slowly: "I fell, how much did I fall?"

"Crude oil rose to $78/barrel yesterday. I thought it could break through $80 today, but it started to fall early this morning. It has fallen to $76, and there is no sign of a rebound."

"Oh."

Fu Guang is in a hurry, what does oh mean? Crude oil fell, we all lost money, why are you not in a hurry?

This time they didn't hedge at all, and every penny down was a big loss for them. This has dropped by two dollars, how much money has to be lost.

"Feng Yu, two dollars, two dollars has fallen! Should we do some hedging, or simply reverse the operation?"

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 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 problems?"

Fu Guangzheng was stunned for a moment: "What do you mean, crude oil may rise back?"

"It's not possible, it's certain!" The trend of rising crude oil is already unstoppable. Although there are some fluctuations, it does not affect the overall situation.

And let alone a two-dollar drop, even a twenty-dollar drop, they are not losing money now, it's just a matter of profit.

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 stop 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, that will strengthen the confidence of many investors. If they deliver the contract, then the price of crude oil must drop rapidly.

If the price of crude oil falls, the US dollar will rise accordingly. Feng Yu and others will sell the US dollar, and the layout of suppressing the US dollar will be seriously affected.

So that the loss over there becomes larger.

Now that the price of crude oil is rising, Feng Yu also knows why, it is because the dollar has stopped falling.

The Fed found that the price of the U.S. dollar continued to fall. Although the decline was not large, it had already had some impact on the U.S. economy.

And they also know that a lot of hot money is selling dollars. If they don't sell again, if the decline of the dollar cannot be stopped, then the position of the dollar will probably be replaced by the very strong euro at this time.

In fact, there has been some international talk that the euro will replace the US dollar. After all, the euro is the common currency of the entire European Union and looks 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 obtain great benefits.

During the period when the US dollar fell, the euro maintained a very stable exchange rate. Whenever the exchange rate fluctuations were about to exceed a certain range, it would be forced to pull back.

More and more countries use the euro as their standing foreign exchange reserves, and even the amount of euros reserved by many countries has surpassed that of the US dollar.

This affects the status of the US dollar as the number one foreign exchange, and they absolutely do not allow it.

Why are you selling dollars and hoarding euros? Isn't it just because of the fall in the exchange rate of the US dollar that those countries with large reserves have lost money?

Anyway, in their view, the US dollar and the euro have similar anti-risk capabilities, and the euro is more stable. Of course, the euro is stored. This is how China is now, reducing its US dollar reserves and increasing its euro reserves to reduce the losses caused by the depreciation of the US dollar.

In order to prevent the depreciation of the dollar, the Federal Reserve decided to raise interest rates, which is to absorb deposits, allowing more countries and financial institutions to store dollars and maintain their status as dollars.

A rate cut will depreciate the dollar, and a rate hike will naturally increase the value of the dollar.

But they overlooked one point, that is, the interest rate at this time is already very high, and if they continue to raise interest rates, the subprime mortgage crisis will become more serious.

So at this time, the price of crude oil fell, not only did Feng Yu not think it was a bad thing, but he thought it was a great good thing.

"Guangzheng, the Fed 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 is, the more money the U.S. government will have to pay, and the less funds will be available to stabilize financial markets such as the stock market."

"Think about it, in this way, we can definitely make a lot more money in the U.S. stock market. Moreover, their Fed's interest rate hike will make our expected time come earlier."

Fu Guangzheng was thinking carefully about Feng Yu's words, which seemed to make sense.

Their joint investment in finance this time is not only investing in crude oil, but also in the stock market of the United States. They are also planning to do a big job.

At that time, Xiangjiang's financial market almost collapsed, and it was not the fault of the Americans.

Now that they have the opportunity to take revenge, they will not let go of this good opportunity, let alone bring a large profit.

"Then we're going to stay put?"

"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's okay to do some hedging at this time, and it's okay not to do it."

By doing hedging, you can reduce the loss of crude oil falling, but when crude oil rises, the profit will also decrease accordingly, and the cost will increase.

Fu Guangzheng smiled mischievously: "Feng Yu, don't test me. I really have no talent in this regard. Anyway, you can discuss with my uncle and father-in-law how to do it, and I will execute it."

In terms of retail, Fu Guangzheng is very good at it. In other words, all the children of the Fu family are very good at it. This is also the industry that 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, Fu Rongqi may not have established him as the helm of the family's future even though Fu Guang's investment in the mainland is very successful. people.

Being able to recognize his own strengths and 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 about it."

In fact, it is Feng Yu who should be worried the most, because Feng Yu invested the most money, not to mention the He family, Zheng family and other funds. If he loses, Feng Yu is also the one who loses the most.

Seeing Feng Yu really not in a hurry, Fu Guangzheng was really relieved. Then this time he went to renew the contract with his partner in Europe, so he didn't have to worry about things here anymore.

...

ps: Our brother Chaoda Cabbage has opened a book titled "Invincible Novice Village Chief". If you are interested, you can go and read it (to be continued.)