America's Road To Wealth Chapter 189

  Chapter 189 First encounter with Wall Street

  This time I returned to New York from my hometown of Texas.

  To be honest, Abel's mood is not very beautiful.

  Lian Yisha's Christmas Eve show.

  According to the statistics of AGB Nielsen, the audience rating is as high as 32 million.

   It also didn't make him feel much better.

  The ratings of 32 million viewers are indeed very high, comparable to the ratings of the 1993 NBA Finals.

   This ratings is also the highest record in the NBA at this time.

  The first Isa show was able to do this.

   It can already be said bluntly that Elizabeth's back garden has become famous all over the United States and even the world.

   Such a huge advertising effect.

   It also made Elizabeth Garden, which opened on Christmas Day the next day, full of 100 stores across the United States every day.

  In just three days, the total sales of one hundred ISA stores in the United States have exceeded 45 million US dollars!

  The average daily sales of a single store is 150,000 US dollars.

  The highest daily sales of a single store is 280,000 US dollars, and the lowest daily sales of a single store is 60,000 US dollars.

   These numbers are all tops in the industry.

  The sales in three days is equivalent to the sales of more than 100 Victoria's Secret stores in more than four months at this time.

  This result is already very gratifying, if it can be maintained.

   It can be said that it is completely worthy of Abel's energy and money in this regard.

   But Abel wasn't too happy about it.

   Whoever called it, whether it's Isa Company or Isha Daxiu, it's just a whim of fun for him.

  He is in a bad mood.

   This overturned his plan to be silent for a month or two.

  He wants to see rivers of blood flow.

  The penultimate day of 2000.

   That is, December 28th.

  Smith Building where Smith Capital is located.

   Enter the safe house state of the whole building again.

  Sent people to keep an eye on the Wall Street giants of Smith Capital.

   Immediately got the news.

  Goldman Sachs, the Market Supervision Department also notified their CEO immediately.

  At that time, Paulson was in a meeting with several company executives.

  The meeting is to discuss some investment strategies and plans after next year.

  After hearing the news, the CEO was lost in thought.

  As far as Paulson knows, Smith Capital has been established for more than half a year.

  In the market, Smith Capital invests a lot and moves a lot.

   But before this, Smith Capital had only conducted a company-wide safe house status once.

   Paulson knew, during that safe-house situation that lasted several days.

  Smith Capital has made billions of dollars in profits in the international foreign exchange market.

  That is almost more than the profit of Goldman Sachs for a whole year this year.

   That Smith Capital firm-wide safe house status.

   It has been more than a month since now.

  This time, Smith Capital has entered this state again.

   Then think of the news that Abel Smith just returned from Texas yesterday.

   Paulson had to think—could this be Abel's new capital hunting operation?

   Or. got support from Texas?

   Otherwise, why did Smith Capital get busy as soon as he came back.

  Paulson, who had contact with the people in Texas, had to think so.

   Paulson asked the head of the Market Surveillance Department a question.

   "I asked you to track the stocks of Smith Capital in the stock market. How are they doing?"

  The person in charge immediately replied:

   "Most of the 131 stocks are rising. The fastest rising stock has risen 76% since Smith Capital bought it."

  Stocks are relatively public investment products.

  With Wall Street giants, you can get first-hand market intelligence.

   Unless when investing, carry out complex decentralized holdings, using hundreds or thousands of accounts to hold.

   Otherwise, a single corporate holding. It is difficult to hide from the detection of giants like Goldman Sachs.

  Smith Capital's investment in the US stock market did not intend to hide from others.

  Anyone who cares can find it out.

  Be more careful and send more elite analysts to watch.

  In this way, I want to know the daily rise and fall of these stocks of Smith Capital.

   It's not too difficult.

   "That's according to your calculations." Paulson said:

   "How much has Smith Capital earned or lost on these stocks so far?"

  The person in charge already had the exact figures, and he immediately replied:

   "As of today's opening. The figure we estimated is Smith Capital, and the account value in these 131 stocks is about 15.6 billion to 16 billion U.S. dollars."

  Hearing this number, Paulson frowned on his bald face.

  Paulson remembers Smith Capital's investment in US stocks.

  Goldman Sachs analysts have analyzed it before.

  Smith Capital Account Value.

   Probably around 13.5 billion to 14.5 billion US dollars.

  According to this valuation.

  Based on the minimum calculation of 13.5 billion US dollars, Smith Capital has made more than 2 billion US dollars in profits by investing in US stocks.

  Based on the calculation of 14.5 billion U.S. dollars, the profit of Smith Capital in the US stock market is at least 1.5 billion U.S. dollars.

  This. How many days is it?

   You made so much money in less than half a month?

   After learning of this data, Paulson was speechless for a long time.

  Finally, he ordered the Market Supervision Department, "Continue to monitor. See what financial products they invest in in this state. After getting the exact news! Remember to notify me immediately!"

   "Remember, you need to be notified anytime, anywhere! Twenty-four hours, no matter what time it is, understand?"

  24-hour standby is too common in the financial field.

  Even if Paulson is in a high position, it is inevitable.

   Who is the global financial market, it is always changing, and there are markets trading 24 hours a day.

  When Goldman Sachs received the news.

  Other Wall Street giants naturally did not let go.

   Merrill Lynch Securities, Morgan Stanley and other giants also received information from Smith Capital that they entered the safe house state again.

  It is different from Goldman Sachs, which is somewhat cautious because of Paulson.

   Merrill Lynch and Lehman Brothers, when they got the news.

  Stanley O'Neal, and Richard Fuld, the bulldog of Wall Street.

  These two Wall Street oligarchs are much more radical and excited.

   Stanley O'Neill rushed to the company immediately.

  The black president convened the relevant personnel of the company's investment department.

   So did Richard Fuld.

   It's not just these two companies.

   There are many giants on Wall Street staring at Abel.

   also made different, but somewhat similar reactions.

   After that investment reception.

  Abel made the practice of setting up his own commercial bank.

   And his approach is undoubtedly a showdown on Wall Street to some extent.

   After the showdown, the whole Wall Street became wary of him.

   cast coveted eyes on him.

   Also last month, he deliberately made David Mellon make several mistakes in investment operations.

   has been greatly enhanced.

   As if after that day.

   The aura of The Wolf of Wall Street is gone.

   Everyone no longer fears him.

   Everyone wants to see if they can tear off a piece of meat from Smith, like Goldman Sachs, Lehman or Merrill Lynch.

  Even if many people know it.

  The failed operations of Smith Capital were probably not done by Abel.

   But in the eyes of these people, after those few times.

   It was as if Abel Smith had a crack in his unbreakable golden body in the capital market.

  Everyone started to test, everyone started to monitor.

   Everyone wants to see if they can snipe the opponent in the next action of Smith Capital.

   About three hours later, at noon on December 28.

  Most of the giants on Wall Street have already found out.

  The investment direction of Smith Capital that has entered the safe house state.

   is foreign exchange!

   Abel Smith plays the most, has the most profit, and is also the financial product with the highest risk.

  Everyone found that this time Smith Capital invested a large amount of money in the currency pair USD/JPY.

  This time, most of the funds of Smith Capital are operated through the Pacific Commercial Bank.

  Another part of the funds, through Wells Fargo and Citibank.

  It is no longer as close as before to those investment banks.

  This makes those Wall Street investment banks only know that Smith Capital has a large amount of funds this time, with a principal of at least one billion U.S. dollars.

  But there is no way to capture the exact amount of funds and the exact flow of funds.

  Smith Capital with its own capital turnover center.

  Its investment situation and capital flow, there is no way to completely monitor it.

  Wall Street giants can only make a rough judgment through the approximate flow of funds.

  Smith Building.

  In the trading hall on the third floor.

  At noon, Abel was looking at the USD/JPY currency pair on the wall of the screen.

   It is indeed as shown by some of the intelligence detected by those Wall Street giants.

  This time, Smith Capital is focusing on the currency pair USD/JPY.

  To be precise, Smith Capital is shorting USD/JPY.

   Today USD/JPY is at 107.700.

  Since 1998, the USD/JPY bull market has gone for almost three years.

   In the second half of 2000, the USD/JPY bull market reached around 107.

  At this juncture, the attitudes of international speculators and domestic investors are somewhat divided.

  Half of the people insisted that this time the yen may reach the exchange rate of 100 or even more than 90 in 1994 and 1995.

  The judgments made by these people are similar to those made by those who are relatively optimistic about the economic situation of neon cabinets in their own country.

  The other half believe that the yen is unlikely to strengthen any longer.

  Because it continues to grow stronger, it will greatly suppress the economy of an export-oriented country like Neon.

  In addition, in the market, many long-term bulls have begun to close their positions.

   The strength to support the rise of USD/JPY is also getting smaller and smaller.

  Once a large-scale long liquidation is caused, the USD/JPY will also plummet at the intersection of the new year and the old year.

   But these are not actually Abel's analysis.

  The reason for him to make this judgment is simple.

  His talent told him【The three-year USD/JPY bull market will usher in a huge correction】

   For this reason, Smith Capital has established 50,000 short positions throughout the morning.

  The average opening position is 107.500.

  This makes Smith Capital still at a loss.

  Holding 10 lots of short positions in USD/JPY, the fluctuation of one point is 500,000 US dollars, and the current floating loss is 10 million US dollars.

  The ten million dollars is just a drizzle to Abel, and Abel doesn't care at all.

  But the traders of Smith Capital in charge of the operation, as well as David Mellon, have become a little worried.

  Because before this, the capital investment led by Abel.

  From the beginning to the end, there is almost no floating loss.

   is to win and win all the time.

   This is still on the account of Smith Capital.

  When making Abel's request, there was a floating loss for the first time.

  Everyone has a slight worry in their hearts.

  Abel asked Smith Capital to open a position and continue to short.

  But he asked Smith Capital not to build positions too fast.

   This is because even with his current financial knowledge.

   Also know in this case.

  If you build too many positions too quickly, you will short hundreds of thousands of USD/JPY short orders at one time.

   It is estimated that the market will not be able to digest it, which will easily cause the USD/JPY to plummet.

  Abel doesn't want to do this, his talent allows him to eat as much as possible in the highest area.

   That keeps profits higher.

   It is one o'clock in the afternoon.

  Abel saw that the USD/JPY had once again rushed to the 107.500 position, so he immediately shorted 10,000 lots of USD/JPY!

  This approach immediately pushed down the USD/JPY by 5 points before it was supported.

   Immediately, USD/JPY began to fluctuate.

   After 5 minutes, he rushed up again.

  Abel immediately shorted another 10,000 hands and suppressed it again.

   Just like this back and forth, repeated many times, USD/JPY can no longer rush to the 107.500 position.

  It is oscillating above the 107.400 position at the moment, but the support at the 107.400 position is still strong.

   Seeing the trend of USD/JPY at this moment is in line with my own judgment in "talent".

   This made Abel sneer—this time let you see, what is the big short on Wall Street!

  From morning till now.

  Smith Capital is at the 107.500 position, shorting 50,000 USD/JPY short orders.

  At present, Smith Capital holds a total of 100,000 short positions in USD/JPY.

  The floating loss has reached more than 30 million US dollars.

  100,000 standard positions, if leverage is not used, it will cost 10 billion US dollars.

  Smith Capital's free funds are currently only about three billion US dollars.

   Without leverage, it is impossible to leverage such a large amount of funds.

  So in this investment, Smith Capital also used leverage.

   It's just because you can't trust the investment banks on Wall Street.

  There are only three banks left as guarantors for Smith Capital this time.

   are Pacific Bank of Commerce, Wells Fargo and Citibank respectively.

  Fifty percent of the funds came from the American Pacific Mercantile Corporation, and the other 50 percent were in charge of Citigroup and Wells Fargo.

  Although Citigroup and Wells Fargo are also part of Wall Street.

   But anyway, the main business of Citigroup and Wells Fargo is still on the commercial bank side.

  This is far more credible than other investment banks.

   Coupled with their strong capital, they can support the funding needs of Smith Capital.

  The two banks each gave Smith Capital 8 times the leverage.

   Abel has $1 billion in deposits at both banks.

   In other words, he can leverage a total of $16 billion in funds at these two banks.

  The leverage of the remaining Pacific Commercial Bank is very exaggerated.

  Abel's deposit at the Pacific Commercial Bank is also one billion US dollars.

   But Pacific Bank of Commerce, gave him twenty-five times leverage

  His one billion U.S. dollars in the Pacific Commercial Bank, the funds that can be leveraged are 25 billion U.S. dollars.

  Such a large amount of funds, such an exaggerated leverage.

   This is almost impossible at any other bank.

   But who is called Pacific Commercial Bank, it is his personal wholly-owned bank.

  As long as his boss is willing to take risks, as long as the Pacific Bank of Commerce has enough funds.

  Even if he used 100 million U.S. dollars to leverage so much funds.

   In terms of formalities and laws, it is also completely reasonable.

  This is the benefit of having your own bank with sufficient funds.

Of course.

   There are costs to doing so.

  One is that interest and commissions must be paid as they are, even if they are paid according to the minimum standards required by the Federal Reserve.

   Otherwise, it is illegal and will be punished by the regulatory authorities.

  another.

   It is this kind of high leverage, or internal leverage.

  If it is exposed, it may cause concerns among those customers of the Pacific Commercial Bank.

  Thus triggering a possible run on the Pacific Bank of Commerce.

   That is to say, regardless of the cost.

  Abel's current “ammunition” is 80+80+250, a total of 41 billion US dollars.

  Currently, 100,000 empty positions have been opened, costing about 10 billion U.S. dollars.

  He still has $31 billion in stock.

  It was two o'clock in the afternoon.

   When USD/JPY falls again.

  Abel seized the opportunity and shorted 5,000 lots of USD/JPY again.

  Suddenly, USD/JPY fell two points again, and then was supported again at 107.400.

  Abel immediately continued to increase the short position by 5,000 lots, and immediately the USD/JPY failed to stand firm at 107.400.

   After more than ten minutes, USD/JPY fell by 10 points and reached the 107.300 position.

  The data milestone given in "Talent" has arrived.

  Abel was overjoyed immediately, and continued to short USD/JPY.

  At this moment, in the transaction department of Bank of Merrill Lynch, in a unique office.

   Stanley O'Neill watched USD/JPY fall again.

  He looked back at Charlie Schaff, and the CFO replied softly:

   "It's basically certain. Smith Capital is shorting USD/JPY on a large scale."

   "Does he think the yen bull market is over?" asked Stanley O'Neill.

  Charlie Scharf shrugged: "Who knows? But he dared to short such a large sum, he should think so."

   Stanley nodded and thought for a few minutes.

  Suddenly the black president asked: "How profitable is our long account?"

   The USD/JPY bull market has been going on for almost three years. At the beginning, the bulls and the bears fought hard, and they were in a relatively balanced state.

  However, since two years ago, short positions have been insufficient, and short massacres have occurred.

  Since then, many bulls have started long-term long-term trading.

  Companies such as Merrill Lynch and Goldman Sachs have entered this relatively stable long-term business.

   "About 50,000 more hands," replied Charlie Scharf.

   Hearing this data, Stanley decisively ordered Merrill Lynch's trading department.

   At the position of 107.300, a 10,000-hand USD/JPY long order was placed decisively.

  The black president of Merrill Lynch continues to be bullish on USD/JPY.

  Why did Stanley O'Neill gradually replace the original CEO of the company in the past two years?

   Except that he is very good at being a man and can please the board of directors.

  It is also because Stanley O'Neill has been on the currency pair USD/JPY since three years ago.

   made a lot of profits for Merrill Lynch.

  In the past two years, Stanley O'Neill has been long on USD/JPY on dips, and the combined profit has reached as high as two billion U.S. dollars, which is really refreshing.

  This amazing profit, coupled with his very good office intrigue skills.

   It was only then that Stanley O'Neill gradually emptied the original CEO.

  Otherwise rely only on office skills.

   You may be able to survive in the four major investment banks, but it is absolutely impossible to occupy a high position.

  Investment Bank Investment Bank, Investment Bank.

   In the end, he wanted to be in the top position, relying on his ability in the investment field.

   Now Stanley O'Neill is still bullish on USD/JPY.

  Although the recent USD/JPY rally has begun to slowly diminish.

  But he believes that the dollar/yen still has a long way to go.

   So Stanley O'Neill is in no hurry.

   Stanley O'Neill's 10,000 USD/JPY long position, plus other long positions.

  About 30,000 lots, and immediately swept away the short orders in the market.

  This kind of behavior caused USD/JPY to rush up again, from 107.300 to 107.390.

   On the other side of Wall Street.

  Lehman Brothers Bank Trading Department.

  Richard Fuld has just made up his mind and wants to get his subordinates in the trading department.

  Buy 20,000 lots of USD/JPY, but I didn't expect someone to take the lead.

   As said before.

  USD/JPY has been bullish for two years.

  There are a large number of investors and institutions all over the world, and they all have a large number of USD/JPY long orders.

  Merrill Lynch is like this, and so is Lehman Brothers.

   In the past two years, the neon economy has picked up and the yen has strengthened.

   Let the yen in the neon cabinet surpass the pound last year to become the second world-class currency in the world.

   Needless to say, the first is the US dollar.

  The market is bullish, plus a large number of long positions.

  In the past two years, no matter which short seller enters the market.

  Often all are forced to leave the market one by one by the strong neon economy and the combination of bulls.

   Investment banks like Lehman and Merrill Lynch.

   In the past two years, I have made very good income in the aspect of long USD/JPY.

   Lehman Brothers now holds more long USD/JPY orders than Merrill Lynch.

  Merrill Lynch only has 50,000 to 60,000 hands.

  Wall Street Bulldog, who has always been very courageous, now holds more than 100,000 lots of USD/JPY.

  But after confirming Smith Capital just now, under this general trend.

   Actually defied the general trend and began to short USD/JPY in large quantities.

  Richard Fuld was immediately overjoyed, thinking that this was a good opportunity to slash the flesh and blood of Smith Capital.

  As soon as there is an empty order in the market, he wants to buy.

   It's just that someone moved faster and cleared the list before Lehman Brothers made a move.

   "Madfake, has anyone seen it?"

   Richard Fold thought, frowning.

  Although the USD/JPY has risen recently, the range is getting smaller.

   But still in a strong state as always.

   In the previous two years, there have been many short massacres.

  Richard Fuld believes that this situation should be at least half a year away.

  He believes that this six months, will continue to rise.

   In addition, Richard Fuld felt that he could afford to do so.

  Lehman Brothers holds more than 100,000 long positions, with a total profit of 200 points, which is calculated to gain 1.2 billion US dollars.

  Such a high floating profit made Richard Fuld full of confidence.

   Coupled with the recent trend of USD/JPY for more than a week.

   It completely conformed to Richard Fuld's previous judgment in his heart, which made Richard Fuld feel a little happy.

  Richard Fuld made the same judgment as Stanley O'Neill.

  He intends to continue to promote the upward trend of USD/JPY and start to build positions!

  He thinks this is a good opportunity to take advantage of the general trend and cut off a large piece of meat from Abe Smith, who can't see the general trend clearly!

  Since everyone has already said it plainly.

   There is no way to be a lackey, only an opponent or a friend.

  Then those Wall Street veterans will not be polite anymore!

  Thinking of this, Richard Fuld, who was more courageous, immediately made 20,000 more hands.

  USD/JPY returned to the 107.500 band again.

  (end of this chapter)

Chapter end