Chapter 11: Short Wall Street
After robbing the Japanese devils, we will also rob the American devils, dear begging to stand up!
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On September 4, 1929, there was a small commotion on the New York Stock Exchange on Wall Street.
The U.S. stock market, which has been in a bull market for ten years, did not rise or fall at the beginning of the day, but stayed at the index of 363 points at the opening of the 3rd session.
The commotion was caused by a small group of people who were eager for the stock market to continue to rise, but most businessmen and investors were calm, because it was not uncommon for the stock market to stop rising, and they had already comforted themselves in their hearts when they looked at the bull market economy in the United States that had been growing for a decade.
In the hotel building, Zhang Meng put down the phone, originally planning to happily look at the spectacular scene when the Americans jumped off the building, but he never thought that the stock index did not fall, but instead frowned.
"It's too dangerous for you to do this, let's give up quickly!"
Zhang Wei looked at Zhang Meng with a worried face. Yesterday, I thought that Zhang Meng would stop after making a billion dollars, but unexpectedly, Zhang Meng suddenly came up with an astonishing sentence.
Short Wall Street!
That's right!
Zhang Meng does not plan to withdraw his capital, but continues to speculate on the US stock market after cashing out. Only this time he stopped buying U.S. stocks to rise, but to buy U.S. stocks to fall.
Short selling, as the name suggests. This is commonly referred to as short selling. Short selling is the sale of all of an investor's holdings of a stock with the hope of buying the stock at a lower price in the future. When short selling, you can buy the sold stocks at a lower price in anticipation of a decline in the price of the stocks. If the subsequent buy price is lower than the sell price, the net difference between the two is the profit made by the short seller.
According to Zhang Meng's estimates, the Dow Jones index will reach a peak of 363 points on September 3, and from September 4 to October 24, the stock will fall by an average of 2 to 3 points per day. According to the current market price of the stock, it is $36,300. Zhang Meng expected the stock price to fall to around $24,000, at which point Zhang Meng used $36,300 to short (short) 90,000 shares, adding $3.3 billion to the account and receiving interest. After October 24, if the stock price falls to $24,000 as scheduled, Zhang Meng can use $2.16 billion to get the 90,000 shares, and the difference of $1.14 billion is Zhang Meng's profit from shorting the shares.
Of course, this money is not cash, and Zhang Meng needs to sell the 90,000 shares after short selling to get it, and it depends on luck whether anyone is willing to spend money to buy back these shares.
If you use a popular sentence to explain, the stock market is a casino, buying up and selling short is like buying big and buying small, and it all depends on God's will to lose and make money after the pressure.
Ordinary people would never dare to do this, and they would be scared to death.
But Zhang Meng knew very well that by October 24, the Hoover administration would rally American banking groups to intervene, and they would inject huge sums of money to turn the tide. Therefore, with the intervention of the government, there will be countless people who believe that the stock market will skyrocket back to 363 points or even exceed 363 points. Therefore, Zhang Meng is not worried that no one will buy his shares, he only needs to get rid of all the stocks before the stock market crashes again on the 28th.
This is Zhang Meng's calculation, he will make another billion dollars in the next two months before he returns home.
But for people like Zhang Wei and Zhang Zhong who don't know the inside story and future changes, Zhang Meng is tantamount to playing with fire. In this regard, Zhang Wei strongly protested, but unfortunately she couldn't say Zhang Meng.
At this moment, Zhang Wei saw that the stock market did not fall like Zhang Meng's prediction, and her worries were naturally reasonable.
Zhang Meng pondered for a while, and finally understood why the stock market did not fall today. It should have something to do with Zhang Meng's huge amount of money injected into the U.S. stock market, after all, Zhang Meng used more than $2 billion to enter the U.S. stock market, which is undoubtedly a shot in the arm for the U.S. stock market, so he did not fall but closed the position.
However, Zhang Meng believed that the collapse of the U.S. stock market was the general trend, so he didn't care and continued to wait.
Sure enough, as Zhang Meng predicted, the ten-year bull market in the U.S. stock market opened on September 8, 1929, for the first time, stopping at 361 points.
This is exactly 5 days later than the first time Zhang Meng knew, which was caused by Zhang Meng's huge amount of money affecting the U.S. stock market.
The stock market fell for the first time, which seemed to be an unusual signal, but the crazy stockholders did not lose heart, they were even more crazy to buy stocks that had been reduced in price, hoping to open tomorrow to appreciate and make a lot of money.
But they were soon disappointed.
In the following time, although the stock market rose and fell, the increase was significantly smaller than the decline, and people who bought stocks as a whole were losing money.
Seeing that the U.S. stock market was falling continuously, Zhang Wei was stunned again, she couldn't believe that Zhang Meng had such a prophetic ability.
"How did you predict that the U.S. stock market would fall? Could it be that you are really a fairy? ”
Zhang Wei suddenly thought of one thing, Zhang Meng fell from the sky that day. Although she knew that Zhang Meng had a parachute on him, she thought that there were no planes passing in the sky that day, so she immediately looked at Zhang Meng suspiciously.
Zhang Meng saw that Zhang Wei had been staring at him, staring at him so much that he felt a little hairy all over his body, so he smiled and said, "It's very simple!" If you look at most Americans nowadays, they don't just take out loans to buy a car, buy a house, or do a business, but if you walk down the street and ask an American what their salary is for a year, they will tell you about 2,000 dollars, and then you ask them how much money they have brought with the bank, and they will repay it all their lives. Even more people earn less than $1,000 a year, which is considered rich in China, but in the United States, they don't even have enough food and clothing. ”
Zhang Wei couldn't understand Zhang Meng's words, and asked, "What does this stock market crash have to do with it?" ”
Zhang Meng didn't know how to explain this esoteric question to her, so he had to make a popular analogy: "What do you think is the difference between this stock market and a casino?" ”
Zhang Wei suddenly said: "I think the stock market is a casino, there is no difference!" ”
Zhang Meng suddenly smiled: "That's right! The stock market is a casino, so how many gamblers have you seen who can get money out of the casino? How many gamblers have entered the casino and come out without going bankrupt and ruined? ”
After Zhang Meng said this, Zhang Wei suddenly understood.
"Yes, which casino gamblers don't lose nine out of ten, lose more and win less! I remember that there were several stock market crashes and crashes in Shanghai, and I don't know how many families were ruined at that time, and my father almost lost all his family. ”
Zhang Meng knew that the stock market crises in Shanghai had indeed plagued many Chinese and pitted a lot of life-saving money for many people.
"Soon you will see groups of Americans lining up to jump off the building, and after the collapse of the US stock market, it will affect the major powers, and their people will also be forced to jump off the building, just take revenge for those Chinese comrades who were cheated by foreigners!"
Zhang Wei was stunned for a moment, and then smiled wryly.