v3 Chapter 1372： Profits from investing in countries

Chapter 1372 Benefits of investing in countries

According to the trend of the previous life, on September 22, 1985, the finance ministers and central bank governors of the United States, the island countries, West Germany, France, and the United Kingdom held a meeting at the Plaza Hotel in New York, and decided that the governments of the five countries would jointly intervene in foreign exchange. The market caused the US dollar to fall in an orderly manner against the major currencies in order to resolve the huge US trade deficit.

This time, Xia Yu can't guarantee whether there will be any changes.

But if he wants to interfere with the signing of the agreement, it is really easy.

Apart from West Germany, there are four remaining countries. He can influence any country. It only takes a time, and that’s nothing.

Even if you don’t interfere.

It is now early August, and there are still more than forty days left for him to operate.

Although this time is a bit tight, it is enough!

The most important thing now is how to use this opportunity to maximize the benefits, not only the financial benefits, but also the benefits of the consortium, and the premise must be as safe as possible.

This has to mention the specific circumstances of the "Plaza Accord".

The reason for the emergence of the "Plaza Agreement" is, in the final analysis, that the U.S. trade problems continue to deteriorate, with a foreign trade deficit of up to 150 billion U.S. dollars. This is the first time since 1914 that the United States has changed from a creditor country to a net debtor country.

Of course, the reason why the U.S. must devalue the U.S. dollar is because although the U.S. trade problems continue to deteriorate, the overall economic situation has improved.

In the past four years, Reagan’s first term has turned the tide of economic development in the United States and laid a solid foundation.

The four years can also be said to be a transitional period, that is, from a period of low productivity growth to a period of high productivity growth.

Transition from a period of high inflation and high interest rates to a period of much lower inflation and interest rates.

Transition from a period when the economy "has many problems" to a period full of opportunities.

Of course, the reason why Britain, France, West Germany and the island countries are willing to go to the United States to sign the "Plaza Agreement" and interfere in the exchange rate of the US dollar is also because they think it is profitable.

In 1980-1984, when Greenspan was the chairman of the Federal Reserve, the United States was constantly raising interest rates. Short-term interest rates rose to 5% from the previous close to zero cost.

High interest rates attracted a large amount of overseas capital into the United States, causing the U.S. dollar to soar. From the end of 1979 to the end of 1984, the U.S. dollar exchange rate rose by nearly 60%. The exchange rate of the U.S. dollar to major industrial countries exceeded the level reached before the collapse of the Bretton Woods system.

So letting the dollar depreciate this time is to decompress the dollar.

The result of decompression is to hope that the production cost of American products will be relatively reduced, stimulate the export of American goods, and ease the trade deficit.

As for the United Kingdom, France, West Germany and the island countries, a large amount of funds flowing out of the United States and entering their countries will also stimulate the domestic economy, such as investment, although the appreciation of the domestic currency relative to the US dollar will lead to the export of domestic goods. Affected, but as long as it is controlled within a certain range, it is still competitive.

There are risks, but the benefits are also great. This is the fundamental reason why the other four countries are willing to sign the "Plaza Agreement."

The depreciation of the U.S. dollar is affirmative, and the gross national product of countries calculated in U.S. dollars will soar this year and next year. Some countries may even increase as much as 40%.

So for Xia Yu’s business empire, his huge dollar funds must find a way to avoid the crisis of devaluation, and use this opportunity to make a leap in his wealth.

Once the U.S. dollar depreciates, major currencies such as the Japanese Yen, West Mark, Franc, Italian Lira, Canadian Dollar, Australian Dollar and Spanish Peseta will appreciate to varying degrees.

As for the magnitude of appreciation, according to the situation in the previous life, from the signing of the "Plaza Agreement" in September 1985, it continued until 1987. Except for the Japanese yen, the largest increase was in the West German Mark, which was as high as 70.5%.

Then the French franc has appreciated by 50.8%, the Italian lira has appreciated by 46.7%, the British pound has appreciated by 37.2%, and the Canadian dollar has appreciated by nearly 11%...

The largest appreciation is undoubtedly the yen.

After losing control, the exchange rate of the yen against the dollar rose by nearly 86.1%!

So it is definitely a wise choice to do more foreign exchange in these countries, but it is still on the surface, with the least technical content, and no benefit maximization.

The best way is to operate in conjunction with the stock markets of various countries.

For example, in the United Kingdom, the British stock market continued to prosper after Margaret came to power. The FTSE index is now at more than 800 points. In the long run, it is expected that the FTSE index will rise to more than 1,400 points until 1987. Will dive, then the increase will reach 75%!

So if you invest 100 million U.S. dollars to convert into British pounds, and then invest in the stock market, and wait until the British stock market crashes before exiting and converting to U.S. dollars, then 100 million U.S. dollars will become 240 million U.S. dollars.

The actual asset increase is then 140%!

And West Germany?

Before March last year, before the West German stock market reached 800 points, the Bright Fund invested in the West German stock market on a large scale. Now the West German stock market has almost doubled. According to Xia Yu's judgment, the highest point is around 1600 points.

From now to most of 1987, it will remain stable, and the rise or fall will not be too large. Until the end of 1987, it will even plummet back to the level before the rise last year.

So now, if 100 million U.S. dollars are exchanged for SDM, and then replaced with U.S. dollars before the stock market crashes at the end of 1987, it will only be 170 million U.S. dollars.

The increase is only 70%!

is only half of investing in the UK!

Only from the exchange rate, in fact, the appreciation of the West German mark is almost twice that of the British pound!

Of course, the most terrifying thing is the island country.

The yen will appreciate by 86.1%, while the Nikkei 225 stock index will rise by as much as 38% in the same period.

So investing in island countries, the actual increase in assets can reach a height of 156.7%, which is higher than that of the United Kingdom!

The most important thing is that you don’t have to worry about investing in island countries, like the United Kingdom, when the stock market plummeted in 1987, which led to a sharp decline in assets.

Because in the crazy year of 1988, the Nikkei 225 stock index could even double that of 1987, reaching 33,000 points!

So I really want to last until 1988, and now invest 100 million US dollars in it, it can become 480 million US dollars!

This rate of return means that you can immediately set up multiple provincial stock markets, and you don’t need to invest in island countries for so long.

Compared with these, the profit of short international crude oil futures is the same.

However, the reason why Xia Yu still wants to short international crude oil futures is to consider that no matter how profitable the investment in these countries is, the market has a capacity after all.

It’s too late!

What's more, he has to allocate capital to invest and use other people's money to make more money, so the amount of funds he can use is huge, and one or two markets can't accommodate it at all. There is a crash in the market and the market is changed. Uncontrollable risks are like investing in the Taiwanese stock market. Although entering the market now and exiting in the second half of 1987, the net investment income can reach 380%.

But if he really needs to invest tens of billions of dollars to get in, he can't even run, and the market can easily be collapsed. The super high rate of return is naturally the middle of the moon in the mirror.

So his eyes are no longer limited to the interests of one place and one corner, but have to look at the overall situation and maximize the overall interests while controlling risks.

This is the pattern that an excellent consortium controller should have!

How to invest, you really have to formulate a detailed investment plan.

Which countries should invest, when should they enter the market, when should they leave the market, what is the investment quota, how to use the profits obtained, how to make the second investment appreciation of the profits earned, and how to use this series of investments to make the consortium’s original value Some companies have been effectively expanded, and it is time to avoid the risks and opportunities of manufacturing caused by the depreciation of the dollar...

All of this requires a detailed action plan and response measures...

PS: There is only one update today. Today, I went out and came to my father-in-law’s house. There are still three months left. We must communicate the major events of life well.

(End of this chapter)