Rebirth of the Financial Overlord

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 in wealth at a very young age.

His name is, Paul Tudor Jones.

Beginning in 1976, 23-year-old Paul Tudor Jones entered the business as a broker, earning more than one million dollars in commissions in the second year. At the age of twenty-seven, he left the brokerage industry and became a field trader in the cotton exchange, earning tens of millions within a few years.

The world is full of geniuses, no one can deny that Jones is the real genius.

But in the trading industry, the most indispensable thing is genius and shooting stars. Anyone's trading career is not smooth sailing. Unfortunately, money can make people dizzy. It is the illusion of life, which will always make people look blank.

It feels like an omnipotent god.

Does God exist?

It feels like it exists.

In 1979, probably because he felt that he had mastered the rules of the world and became a god, the 29-year-old Jones placed long orders, but as a result, he encountered the daily limit and lost two-thirds of his funds when he exited the market.

He was so frustrated that he almost completely lost confidence in himself and almost changed his career.

Because, he thought that the bottom of the mountain was more, but he didn't expect it to be the mountainside, and the mountainside where he stopped the loss became the bottom of the mountain. It felt awful, like someone was watching his account being robbed, with precision.

Is it a tragedy for the stock market?

No.

This is an inspirational story.

In other words, this is a story of genius comprehension.

Since then, he has learned to control risks and abide by principles.

Four years later, he left the exchange to start the Tudor Fund, starting with $1.5 million. After another four years, the share invested in his fund has increased to more than 1,700 U.S. dollars for less than 100 yuan.

A full seventeen times, more!

In October 1987, the global crash, the 23% drop in the Dow Jones, the 28% drop in the Nikkei, and the terrible crash in the global financial market caused heavy losses to most investors in the world. But in that month, the Tudor fund managed by Paul Tudor Jones achieved a return of 62%.

By early 1992, the Tudor Fund had grown to a total of $6 billion. If Jones hadn't stopped accepting new investments and started distributing profits at the end of 1987, six billion dollars would have been absolutely unstoppable.

Yes, this is a genius.

At the age of thirty-eight, he is worth more than one billion dollars and is a genius who manages billions of dollars. However, genius does not mean that you will not make mistakes, and geniuses can also be confused sometimes.

USD/ECU, 81.076

Watching the price of the U.S. dollar drop for half a year, Jones habitually touched his somewhat bald head.

At the beginning of this year, judging from various data, the U.S. economy continued to improve, the property market picked up, the stock market rose, the unemployment rate dropped sharply, and the number of people receiving relief benefits continued to decrease. This kind of data, from a historical point of view, should have been considered by the Federal Reserve Problems brought about by inflation, and leave room for manipulation in the fluctuation cycle of the capital economy.

This means that the Fed will raise interest rates.

In the European market, affected by the changes in Eastern Europe, the economy continues to slump and the unemployment rate is rising. Considering that the central banks of various countries are unknown, interest rate cuts are the only possible outcome.

If the Fed continues to raise interest rates, the narrowing of the interest rate gap between Europe and the United States will reverse the early weakness of the US dollar. Now the biggest enemy of the United States has fallen. Then the U.S. dollar will continue to rise.

Therefore, Tudor funds entered the market and bought a lot of dollars.

But the result. Two months ago, the Federal Reserve actually cut interest rates, while the dollar fell to 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 read it.

The Wall Street Journal

On the front page, an old man in a black suit with thinning hair and glasses was standing on the floor, looking as if he could be blown down by a gust of wind.

But Jones knew deeply what a jerk the old guy was.

That year, that year, he made huge profits by shorting the Dow Jones and Nasdaq based on the fear index he defined, but the guy in the newspaper made a speech that stopped the stock market from falling and rebounded, making him spit out a lot profit.

Alan Greenspan.

"From the data point of view, although the U.S. economy has entered a recovery cycle, due to the impact of the European and American markets, the U.S. economy has shown signs of decline in the past two months. The most obvious is the decline in the purchasing index and the fact that wages have not been raised. In view of various factors, the Fed does not A rate cut at next week's meeting is ruled out."

Holding the newspaper in his hand, the more Paul Jones read it, the more he felt that he was being fucked by a dog.

It was Alan Greenspan who made him spit out huge profits in the short market four years ago, and now it is Alan Greenspan who made him make huge losses on long dollar positions.

"Politicians for dog days."

Aggrieved and dropped the newspaper in his hand, Jones cursed angrily.

The US economic data has been very good this year, and various data show that the economy is entering a healthy cycle and will get better.

However, the Fed said that there are hidden dangers and sluggishness in the economy and the need to lower interest rates.

This is lying.

Why 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 largest reserve currency in the world. The value of the U.S. dollar directly affects the economies of various countries. Now European countries have signed the "Maastricht Treaty." When Mayo takes effect in November next year, European countries will become a whole. The monetary unit will become the biggest threat to the dollar.

This is absolutely intolerable.

what to do?

The United Kingdom and Italy are the core countries of the European Community, but their economies continue to slump, and they need loose monetary policies to stimulate inflation.

But now, they have to maintain the fluctuation track of ECU.

If the U.S. dollar depreciates, the ECU currency value will increase, and the currency value will increase, which will bring huge pressure on the export of commodities. This pressure will be transmitted to the economy, which will make the economic system that is already under pressure even more difficult to bear. When the critical point is reached, this point will explode like a balloon.

Moreover, the German central bank has always insisted on a tight monetary policy, which seems to have planted a thorn in the hearts of the United Kingdom and Italy.

If the U.S. dollar lowers interest rates at this time, it seems to relieve the pressure on the pound and the lira. At least, the loose interest rate will not cause British assets and lira assets to flow into the United States.

Wanting to understand this, Jones picked up the cigarette and lit it depressedly. He realized that he might only be tricked by this Jewish bastard this time.

A genius is a genius after all. After smoking a cigarette, Jones forced himself to pull himself together. He knew very well that in this market, the only secret to success is detachment. Anything that happened has become the past. What happened three seconds ago It doesn't matter, the key is what to do next.

After thinking about it for a moment, he put out the cigarette butt in his hand, picked up the phone on the table and dialed it.

Soon, the phone was connected, and Depp's voice came clearly from the receiver.

"Hello. Hello. I'm John."

"John. It's me. Close out all our dollar positions right now. Right now."

"what happened?"

“We did a very stupid thing. Listen to me, I will explain it to you when I have time, now cover all dollar positions and build enough short lira and pound positions.”

"Enough, how much is that?"

"All. Six billion dollars!"

"Oh karma. Paul, are you sure? I don't know how to explain it 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."

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