The richest man starts with a blind box

Chapter 786 The Wall Street Collective Vacation Incident

"Extra, the black financial god came to Wall Street for the first time, trying to negotiate with institutions, and insisted on delaying the transaction!" In November, when Swift Jr. entered Wall Street, such news spread immediately, and the whole Wall Street went up and down. Everyone laughed like a flower, waiting to see the good show of little Swift.

In other words, although Swift Jr. is the black financial god of the United States, he really doesn't have much contact with Wall Street, the financial center of the United States, and he hasn't even been to Wall Street in person.

That's right, Swift Jr. has always stayed in this company, or participated in some public activities, but has never really set foot on Wall Street.

Even if you don't enter Wall Street, you can still complete all the work remotely. Of course, you can't help giving people a feeling of arrogance, which shows that Little Swift looks down on Wall Street and the people who stay in Wall Street.

This undoubtedly made everyone on Wall Street very uncomfortable. They were actually looked down upon by a black man, which is simply a joke in the world.But this is also something that can't be helped. Who will let others be bullied?Two consecutive funds have made all investors a lot of money, and both have achieved a rate of return of more than 100%.

This makes those investors who look down on Little Swift in their bones, especially many large financial institutions on Wall Street, pointing at Little Swift's nose and scolding, while trying their best to buy more Western Mustangs Fund coupons.

After all, making money is the most important thing, everything else is not a problem and can be tolerated.

But now, little Swift has to step on the wall of Wall Street, which makes many Wall Street people who have been humiliated in their hearts before cheering, and at the same time, they are ready to laugh to see what little Swift will continue to suffer next. What an insult.

Because everyone knows what Swift Jr. came to Wall Street this time for the purpose of delaying the short transactions he bought so that his Western Broncos fund would not lose out.

Thanks to its own high attention, all the investments of the Western Mustang Fund have been paid attention to by the industry, and everyone naturally knows that Swift shorted almost all large mobile phone companies and brands.

Regarding this move, everyone on Wall Street was puzzled at first. They said they could not understand Swift's operation at all. He actually thought that the mobile phone industry would suffer a large loss. This is like predicting that the Huaxia team will lose to Vietnam. Just as incredible.

And until the appearance of Zhongmi mobile phone, this kind of doubt turned into ridicule. At that time, the stocks of major mobile phone companies soared by 80%, and all Wall Street people confirmed that Little Swift was a complete liar and a goddess of luck. Favored guy, otherwise it would be impossible to explain why he was able to make such outrageous operations.

But now, many people on Wall Street express their sincere admiration for Swift Jr., and even recognize Swift Jr.'s ability.

After all, people on Wall Street are not fools, they will be fooled by the vague quarterly reports of major mobile phone companies.

This trick of playing with words to turn monthly sales into three-month total sales, that is, those stupid retail investors, these professionals who usually dream about numbers, can see through this quarterly report at a glance. Based on this, it can be judged that the sales of major mobile phone companies must have dropped significantly.

Even because these companies dare not directly publish normal data, but play this kind of trick, it is confirmed that the crisis faced by major mobile phone companies this time will be even more terrifying, and the sales of the next quarter may be cut in half directly. level up.

After understanding a little bit, everyone realized just how wise little Swift is. He actually saw through three months in advance that Huaxia mobile phone companies were going to enter the US market, and then they would have such a huge influence.

In their view, little Swift's actions this time actually proved once again how bright the hat of the black financial god is on his head, and they are really not qualified to ridicule such a financial king.

But they just want to laugh, because even if Swift Jr. is really a genius, he will be obediently beaten to the ground this time, because the Wall Street institutions will never let Swift Jr. renew his short deal .

Let me explain here that short trading is to borrow stocks from major institutions and exchange them for funds in the market.After the agreed time, if the price of this stock plummets, it is possible to buy the same stock with only 1/10 of the funds, and then return it to the institution, and at the same time return the borrowed funds.In this way, 90% of the profit can be made at one time, which is very scary.

However, the period of this kind of short transaction is generally not too long, generally around three months, because short transactions need to pay a huge amount of interest. Calculated on a monthly basis, the current general monthly interest rate in the industry is 2%.

At the same time, this part of the funds must be agreed on a time limit, and then paid in advance.

For example, if you plan to borrow 100 billion stocks and agree to borrow them for three months, then you must pay 6 million in advance as interest before you can borrow the funds.

This monthly interest rate is very scary. It is 6% in three months and 24% in one year. This interest rate is higher than usury.

Once this time is too long, the interest paid is more than the money you earn, which is simply outrageous.

Therefore, no one would be willing to take the initiative to short something unless they are fully sure that they can predict the stock's plunge in a short period of time.

Little Swift's short purchase this time is three months.

Then the three-month period has come, and according to the rules, Swift must return the stocks he borrowed, otherwise, liquidated damages will be calculated on a daily basis.

After all the deposits are deducted, little Swift will have to go to the court to accept the court trial, so at this time little Swift has only two ways to go.

One way is to negotiate renewal with these institutions, and the other way is to pay back the money immediately.

But at this time, the whole Wall Street knew that those institutions would never renew their contracts with Swift. First of all, Swift himself was too famous on Wall Street, and everyone wanted to make this damn black kid a tough guy. So he forced the other party to repurchase the stock at a price exceeding 30% of the selling cost, and then lost a large amount of money, completely ruining his title of black financial god.

Secondly, it is said that Motorola, Nokia and other companies have already started lobbying behind the scenes, and are using their huge power behind them to teach little Swift a lesson.

Finally, and most importantly, countless institutions intend to use this transaction to make a lot of money, and then run away directly.

According to the short-selling steps, now little Swift must do everything possible to buy back the same amount of stocks he borrowed from the stock market, and this is a huge amount of stocks with a total of 400 billion U.S. dollars, accounting for [-]% of the entire mobile phone market. One or so scale.

That is to say, in the future, there will definitely be a purchase order of 400 billion US dollars thrown into the market. This is the foreseeable future. This purchase order itself is the biggest positive factor in the world. If there are hundreds of millions of stocks, who would be willing to sell their stocks cheaply at this time?
So the prices of these stocks are bound to go up.

At this time, it is time for institutions to take the opportunity to run away.

As I said before, people on Wall Street know better than anyone else. They already understand that those mobile phone companies have already closed their doors. When the annual financial report is released, it is only natural for the stock price to plummet.

But the problem is that when the stocks of these mobile phone companies skyrocketed, these Wall Street institutions took the opportunity to buy a large number of the stocks of these mobile phone companies. As a result, now, all the stocks bought at these high prices are about to be thrown into their hands... They still dare not If one institution sells first, other institutions will follow suit, and the entire stock price will plummet, and their losses will be undeniable.

The only way for them to evacuate safely is to let Swift Jr.'s Western Broncos Fund take over the order, taking advantage of the fact that Jr. Swift must buy back the previous 400 billion worth of stocks, and sell the squeezed stocks in their hands to the small Swift, thus completing his run.

It's like holding a grenade in your hand. If you don't hand it over to Swift, the institutions will be killed.

So how could the major institutions allow little Swift to postpone it? After all, if it is postponed for another three months, it will be time for the annual report to be published.

When the bad sales data of the major mobile phone companies is announced, all retail investors will inevitably start to flee, and the stock price will not be able to hide it completely. We must take advantage of the fact that those stupid retail investors are still full of confidence in mobile phone companies, and the stock price is still strong. When the market continues to rise by a small margin, quickly let Little Swift take over.

Therefore, it is absolutely impossible for little Swift to renew the contract, because it violates the interests of almost the entire Wall Street, not to mention because of Little Swift's status, it is absolutely the most perfect person to entrap such a guy who is hated by everyone. choose.

Ever since Little Swift came to Wall Street, everyone has already sentenced Little Swift to death.

The fact is also true, Jr. Swift visited five institutions in one day, and the stocks he borrowed were borrowed from these five institutions.

When I borrowed stocks, these institutions were very kind and greeted me with smiles, wishing I could put the stocks into little Swift's hands immediately.

As a result, these little Swifts can't even see the big bosses of these organizations. These people are either out for meetings or on vacation. Only some middle-level managers met with Little Swift and said that because of market problems, there is currently no any possibility of renewal.

In the end, little Swift had no choice but to leave Wall Street in a very embarrassing and desperate way, and became the biggest joke on Wall Street that day, the kind that never existed.

(End of this chapter)