Vol 5 Chapter 46: Genius

In the 100-year history of the US financial market, countless speculators have gained fame, but there is probably only one person who can earn hundreds of millions of dollars at a very young age.
　　His name is Paul Tudor Jones.
　　 Beginning in 1976, the 23-year-old Paul Tudor Jones joined the trade as a broker and earned more than one million US dollars in commissions in the following year. At the age of 27, he left the brokerage industry and joined the Cotton Exchange as a live trader, earning tens of millions in a few years.
　　 The world is genius, no one can deny that Jones is the real genius.
But in the trading business, genius and meteors are the most indispensable. No one's trading career is smooth sailing. Unfortunately, money can be dizzying. The kind of market obeys its own instructions, the kind of control of everyone's wealth, even It's an illusion of life, always condescending.
　　It feels like an omnipotent god.
　　Does God exist?
　　 It feels like it exists.
　　 In 1979, I probably felt that I had mastered the rules of the world and became a god. The 29-year-old Jones entered long orders, but he encountered a falling limit and lost two-thirds of his funds when he closed the order.
　　 He was so depressed, he almost completely lost faith in himself and almost changed his career.
　　Because, the bottom of the mountain that he thought was a lot, he didn't expect it to be the mountainside. The mountainside that stopped the damage became the bottom of the mountain. The feeling was terrible, like someone watching the money in his account robbed, accurate.
　　 Is this a tragic stock market?
Do not.
　　 This is an inspirational story.
　　 In other words, this is a genius insight story.
　　 Since then he has learned to control risks and follow principles.
　　 Four years later, he left the exchange to create a Tudor fund, starting with 1.5 million dollars. In another four years, the share invested in his fund has increased to more than 1,700 U.S. dollars after less than 100 yuan.
　　 exactly seventeen times, more!
　　Month, the global crash, the 23% decline of Dow Jones, the 28% decline of Nikkei, and the terror of the global financial market caused heavy losses for most investors in the world. But in that month, the Tudor Fund managed by Paul Tudor Jones received 62% of the returns.
　　 By the beginning of 1992, the total Tudor fund had grown to six billion US dollars. If it weren't for Jones to stop accepting new investments and start distributing profits at the end of 1987, then six billion dollars would definitely be unstoppable.
　　 Yes, this is a genius.
　　 A genius with a net worth of more than one billion U.S. dollars and managing billions of dollars at the age of thirty-eight. However... genius does not mean that you can't make mistakes, and geniuses are sometimes confused.
　　.076
　　 Watching the price of the U.S. dollar have fallen continuously for six months, Jones habitually touched his bald head.
At the beginning of this year, according to various data, the US economy continued to improve, the housing market rebounded, the stock market rose, the unemployment rate dropped sharply, and the number of people receiving benefits continued to decrease. Historically speaking, the Federal Reserve should consider such data. The problems caused by inflation have left room for operation in the volatile cycle of the capital economy.
　　 means that the Federal Reserve will definitely raise interest rates.
　　 In the European market, affected by the changes in Eastern Europe, the economy continues to be sluggish and the unemployment rate is rising steadily. Considering the unknown of central banks, cutting interest rates is the only alternative.
If the Fed continues to raise interest rates, then the narrowing of the interest rate differential between Europe and the United States will reverse the early weakness of the US dollar. Now the United States’ biggest enemy has fallen. This country has no rivals in the world. According to the Fed’s interest rate regulation cycle, as capital is attracted by interest rates to return to the United States, Then the dollar will inevitably continue to rise,
　　 So, the Tudor Fund entered the market and bought a lot of dollars.
　　 But the result...Two months ago, the Fed actually cut interest rates, but the U.S. dollar has reached a record low in the past 15 years.
　　 Looking at the huge losses facing the fund account, Jones grabbed the newspaper on the table and looked at it.
　　 The Wall Street Journal
　　 The front page headline, an old man in a black suit, thin hair, and glasses clasped on his body, seems to be able to blow down in a gust of wind.
　　 But Jones knows how this old guy is.
That year, that year he shorted the Dow Jones and Nasdaq according to his own definition of fear index and made huge profits, but this guy's speech in the newspaper stopped the stock market from falling and rebounded, making him vomit a lot. profit.
　　 Alan Greenspan.
"From the data point of view, although the U.S. economy has entered a recovery cycle, it has been affected by the European and American markets. The U.S. economy has shown signs of decline in the last two months. The most obvious is that the procurement index has decreased and wages have not increased. In view of various factors, the Fed does not Rule out the possibility of a rate cut at the interest rate meeting next week."
　　 With the newspaper in his hand, the more Paul Jones reads it, the more he feels that he has been given up by the dog.
　　 It was Alan Greenspan who made him spit out huge profits in the short market four years ago. Now, it is Greenspan that made him make huge losses on the long US dollar position.
　　 "Politician of Dog Day."
　　 Frustrated and dropped the newspaper in his hand, Jones angrily scolded.
　　 The US economic data has been very good this year. All data show that the economy is entering a healthy cycle and will become better.
　　 However, the Federal Reserve stated that there are hidden dangers and sluggishness in the economy, and interest rates need to be lowered.
　　 This is lying.
　　 Why did you lie?
　　As a generation of speculative geniuses, Jones still can't see it now. Everything is to put pressure on the European currency unit.
The U.S. dollar is the world’s largest reserve currency. The value of the U.S. dollar directly affects the economies of all countries. Now European countries have signed the Maastricht Treaty. When the Mayo Convention takes effect in November next year, European countries will become a whole. The currency unit will become the biggest threat to the dollar.
　　 This is absolutely unbearable.
How to do?
　　 The United Kingdom and Italy are the core countries of the European Community, but their economy continues to be sluggish, and it is very necessary for a loose monetary policy to stimulate inflation.
　　 But now, they must maintain the fluctuating track of the ECU.
If the U.S. dollar depreciates, then the ECU currency value will rise, and the currency value will rise, which will bring huge pressure on the export of commodities. This pressure is transmitted to the economy and will make the already stressed economic system more difficult to bear. Once the critical point is reached, this point will explode like a balloon.
　　 Moreover, the Bundesbank has always adhered to its tight monetary policy, which is like a thorn in the hearts of Britain and Italy.
　　 If the U.S. dollar lowers interest rates at this time, it seems to be releasing pressure on the British pound and the lira~EbookFREE.me~ At least, loose interest rates will not cause British assets and lira assets to flow into the United States.
　　 Wanting to understand this, Jones picked up the cigarette depressed and lighted it up. He found that this time he might only be scammed by this Jewish bastard.
A genius is a genius after all. After smoking a cigarette, Jones forced himself to cheer up. He knew very well that in this market, the only secret of success is detachment. Anything that happened has passed away. It happened three seconds ago. It doesn't matter, the key is what to do next.
　　 After thinking for a moment, he put out the cigarette in his hand, picked up the phone on the table and dialed out.
　　 Soon, the phone was connected, and Depp's voice came through the receiver clearly.
　　 "Hello. Hello. This is John."
　　 "John. It's me. Close all our dollar positions now. Now."
"what happened?"
　　 "We did a stupid thing. Listen to me and explain to you when we have time. Now we close all dollar positions and establish enough short positions in lira and pound sterling."
　　 "Enough, how much is that?"
　　 "All. Six billion dollars!"
　　 "Oh Karma. Paul, are you sure? I don't know how to explain to the client."
　　 "John, trust my judgment. As for the others, you don't need to explain, just say that this is my will and they will understand you."
　　 "......"