Chapter 350 Risk Allocation

The reason why Yang Jing dared to play this hand was because he knew the specific situation when the stock market crash broke out.

From now on, it is true that you can make a lot of profits in the first ten months, but on the day the stock market crash breaks out, all the previous profits will disappear, and even a little loss, but Yang Jing doesn't care.

For example, the current purchase price of General Electric's stock is $3.6 per share, but on the day of the stock crash, General Electric's stock price will fall to $3.2 per share.

How much can it be reversed? 5% of the cost price, or 10%? Even if it reaches 10%, Yang Jing doesn't care, isn't it just a loss of 500 million US dollars, he can afford it.

But in the same way, if you lose $500 million, you can get more outstanding shares in the stock market, and if these companies agree to Yang Jing to buy back the shares, then Yang Jing can control more shares.

For example, Microsoft's stock price this year is the highest $48 per share, at this price, Gates's net worth is only more than $500 million, but once the stock market crash occurs, even if Gates buys back shares, how much money can he use?

In the case of the stock market crash, as long as Yang Jing, who controls 5% of Microsoft's shares, proposes to use a large amount of cash to buy back the shares, Microsoft has almost no possibility of refusing. In this way, Yang Jing has a great possibility to repurchase more than 5% or even 10% of the outstanding shares in the circulation market, so that Yang Jing will suddenly become the third largest shareholder of Microsoft after Gates and Allen, and as long as Yang Jing does not reduce his holdings of Microsoft's shares in the future, he can even surpass Paul Allen to become the second largest shareholder of Microsoft.

The most important thing is that Yang Jing became the third largest shareholder of Microsoft, and the amount of money spent was not much, $150 million was enough!

This is true for Microsoft, and the same is true for other companies.

In other words, Yang Jing can consume ten months of time plus a loss of half a billion dollars, and finally get a lot of shares in companies such as Microsoft, Oracle, IBM, Intel, Walmart, General Electric, General Dynamics, etc.!

And did Yang Jing really lose money? Obviously not, in the US stocks, there is also a method of operation called "hedging".

That's right, I'm losing money on stocks, but I'm going to make a lot of money on stock index futures!

Don't forget, Yang Jing only authorized David Anderson to buy the shares of major companies for $5 billion, and the KY fund still has a full $7 billion in its account!

What is this money for? Quite simply, it was used to short stock indices on "Black Monday" on October 29, 1987!

Seven billion US dollars is also the largest investment amount given by the Holy Ring, and the Holy Ring also clearly told Yang Jing that the profit from this investment cannot exceed 700%!

Compared to last year's speculation on the dollar and the yen, the Holy Ring only gave a profit limit of 300%, and now 700% is magnanimous enough.

With an investment of $7 billion, you can get 700% of the profit, that is, you can get $49 billion. Compared with this kind of profit, the little money lost in the stock is a drop in the bucket!

The most important thing is that if you want to short US stocks, it is not so easy to take advantage of the stock market crash to make a fortune.

The US securities market has been developing for nearly 200 years, and there is already a set of extremely perfect systems, especially the monitoring system, which is quite strict, and if you want to make a fortune with the help of the stock market crash, if you can't find out, it's better to say that once it is found out by the Securities Regulatory Commission, it will be the end of sitting in prison, and there is absolutely no second way to go. You're the richest man in the United States!

The Americans are absolutely merciless in this kind of thing. If you take advantage of the stock market crash to make a fortune, it is equivalent to cutting meat on the shareholders of the United States, and it is strange that people can spare you!

In fact, in the stock market crash in 87, there were many people who took the opportunity to make a fortune, and as a result, all of these people were arrested without exception, and six of the well-known rich people in the United States alone, with a net worth of billions of dollars, were arrested!

Those guys are also stupid, if you short the US stocks, you can short them, you can cover it up, you really think that the US Securities and Exchange Commission is a gang of people who eat dry food? You are so honest and bright to short the US stocks, and it is strange that the world does not settle accounts with you afterwards!

However, it is precisely the lessons of these arrested tycoons that Yang Jing has a sense of vigilance.

It is actually not difficult to take advantage of the stock market crash to make the Americans' national disaster wealth, but the difficulty is to find a fair and honest reason to make this national disaster wealth.

For example, Yang Jing has already sat down and made sufficient preparations. For example, if you start buying a certain percentage of the shares of major companies now, and then use your status as a major shareholder to buy back the shares when the stock market crashes when the stock market crashes, no one can say this.

Similarly, the U.S. stock market crash was not sudden, as early as a week before the stock market crash, the market had actually performed, so when Yang Jing shorted U.S. stocks on the day of the stock crash, he could use hedging to explain his shorting of U.S. stocks.

Yes, I am a major shareholder in so many companies, and I did not sell my shares when the stock market crashed and bought back the shares, which is enough to prove my determination to protect the US stock market. Besides, I am not shorting U.S. stocks for the sake of making a fortune, it is just a means of hedging value, although I am short U.S. stocks, but the profits I earn from shorting are used to buy back stocks, I have not made a penny myself, not only am I not guilty, I should also have merit!

In fact, Yang Jing really didn't want to make much money in the U.S. stock market crash, although in that stock market crash, the U.S. stock market was the most severely affected, but Yang Jing didn't want to make much money in it.

15 billion US dollars, this is Yang Jing's bottom line.

With the total amount of funds in the KY fund, in such a serious stock market crash, as long as you dare to short a large amount, you can definitely make a profit of more than 100 billion US dollars in one day by using a high proportion of margin leverage. But Yang Jing didn't want to die so quickly, he knew very well that if he dared to do this, the US authorities would not be able to arrest him afterwards, but the Evil Dragon Fund would definitely be completely finished.

So Yang Jing set a bottom line of $15 billion for himself.

Moreover, Yang Jing will not keep the 15 billion US dollars earned by taking advantage of the stock market crash, but will use all of it to buy back shares.

Like Citibank at this time, before the stock market crash, Citibank's market value was as high as 120 billion US dollars, but after the stock market crash, Citibank's market value plummeted to only 70 billion US dollars, and Yang Jing could use 7 billion US dollars to acquire one percent of its shares, thus becoming one of Citibank's individual major shareholders in one fell swoop.

Owning a 1% stake in Citibank is quite a remarkable thing, even on the board of directors of Citibank Group.

The most important thing is to become a major shareholder of Citibank, which will greatly promote the future development of KY Fund.

KY Fund is positioned as an investment fund, and there is such a behemoth as Citibank behind it, and everyone has to pay three points to it, which is the importance of having the status of a shareholder of a large bank group.

And General Dynamics, too. Although General Dynamics is not a consortium of banks, it is one of the top two arms contractors in the United States and has a significant position in the United States.

Before the crash, General Dynamics' stock price was only $1.26 per share, and after the crash plummeted to less than $0.6 per share, it would be quite a remarkable thing to spend $3 billion to buy a 1% stake in it. After all, around 2000, the stock price of General Dynamics could soar to $75 per share, and the stock price soared 125 times in 13 years, becoming a behemoth with a market value of $300 billion, of which one percent was also worth $30 billion!

As for Intel, Microsoft, and Oracle, these companies are still "gadgets", after the stock market crash, even the most potential Microsoft, has a market value of just over a billion US dollars, and Yang Jing can't even use a billion US dollars to own more than 15% of the shares of these three companies!

And as long as Yang Jing uses all the funds earned from the stock market crash to buy back shares in the stock market, even the SEC will not say anything else, but will be grateful to the KY fund.

In this way, Yang Jing can not only obtain a large number of blue-chip stocks at a very small price, but also obtain a large number of shares in companies such as Microsoft and Oracle, and can get more attention from the US Securities and Exchange Commission. It's a triple win.

Of course, Yang Jing will not just earn such a small amount of money. After all, like the stock market crash in 1987, it is rare in 30 years, if you don't make good use of this stock market crash to make a lot of profits, Yang Jing feels sorry for himself.

In addition to the KY investment fund, there are six other offshore companies under the name of the evil dragon fund, and Yang Jing can use these six offshore companies to make a profit on U.S. stocks at that time. Even if each company only makes a billion dollars in net profits, that's a net profit of six billion dollars.

And in addition to the U.S. stock market, the stock markets of other countries around the world were also severely affected by the stock market crash.

On the day of the "Black Monday" crash, the Nikkei 225 index fell 620 points, or 14.9%, the Hong Kong Hang Seng Index fell 421 points, or 11.3%, also set a record for a one-day decline, Singapore's Straits Times Index fell 169 points, or 12.4%, and Argentina's FTSE30 index fell 183.7 points, or 10.1%; Britain's FTSE 100 index fell 249.6 points to 2,053.3 points, and investors lost 50 billion pounds. In addition, stock markets such as Paris, Frankfurt, Stockholm, Milan, and Amsterdam all fell by 6% to 11% to varying degrees.

This is the main battlefield where Yang Jing swept huge profits!

$7 billion, the maximum amount of funds used in the US stock market is $3 billion, and the remaining $4 billion, Yang Jing plans to invest all of them in the stock markets of the world's major developed countries.

Not to mention, stock markets like Tokyo, Singapore, Hong Kong Island, London, Paris, Frankfurt, Milan, Buenos Aires, each of which only needs to earn a few billion dollars, plus the profits made on the U.S. stock market, it is very easy to make a profit of $49 billion.

This is also insurance, and it is difficult for the securities regulatory commissions of those countries to catch their little tails!

Shorting the U.S. stock futures index can certainly maximize profits, but the danger is also great. Scattering funds across the world's major stock markets is a bit of a hassle, but it's safer. Being able to spread out the huge risk and turn it into a less risky investment is the quality that a good investor should have!

PS: Bow and thank "Ziyan Tianjiao" for the tip of 500, "Kunpeng 3357" for the tip of 200, and "Ice Octave", "Legendary Soldier King", "Dasheng Maniac", and "No Wind and Heavy Rain" for the tip of 100.