Liao Chengde was taken aback and couldn't help but ask in return. He hadn't yet recovered from the dazzling operations of Zhong Shi, and when he suddenly heard Zhong Shi's question, he was a bit confused.
"Do you plan to put that twenty million in my portfolio to make money, or wait for me to pay it back next year?"
"Why wait until next year?"
Liao Chengde was greatly surprised, realizing that Zhong Shi must have a big plan to make money. His mind started to race, thinking that as long as it wasn't a high-risk investment, he would be willing to get involved.
For high-risk investment products like futures and options, although Liao Chengde was tempted by their terrifying returns, he didn't plan to get involved. He had saved for half his life to barely accumulate a few tens of millions, and he didn't want to lose it all in one night.
"This is a secret, but if you have any ideas, I don't mind letting you in on the profits!"
Zhong Shi scratched his head, feeling a bit puzzled. He suspected that Liao Chengde wouldn't be able to accept his method of making money next year.
"Uh... Since that's the case, I'll just take the principal back next year!"
Seeing Zhong Shi's hesitant words, Liao Chengde understood that the way Zhong Shi planned to make money was something he couldn't accept, which explained his expression.
"Alright, I'll give you a tip on how to make money! It's a surefire way to profit, by investing in the Japanese stock market!"
Zhong Shi didn't insist and, with a twinkle in his eye, said something that shocked everyone present.
"What? A surefire way to profit?"
"Is there such an investment method?"
...
Everyone was greatly surprised by Zhong Shi's words. They weren't investment novices and knew that there was no such thing as a guaranteed win in investments. Hearing Zhong Shi say that there was a surefire way to profit, they were naturally taken aback!
If it weren't for the fact that Zhong Shi had made a fortune right before their eyes, they would have already chased him out like a charlatan.
"Mr. Liao, how much do you have left? Oh, right, the twenty million loan, we'll split it fifty-fifty. I'll pay it off myself next year, and five million will go to paying off the previous debt, while the other five million will be your dividend for supporting me this time."
Zhong Shi didn't explain further and started to clean up with Liao Chengde. Now he had invested eighty million in the options market, including Liao Chengde's twenty million, plus the twenty million borrowed in Liao Chengde's name, totaling a debt of forty million Hong Kong dollars to Liao Chengde. By saying this, he was essentially giving Liao Chengde twenty-five million for free.
Liao Chengde did the math in his head and knew he wasn't at a loss. The twenty million loan was no longer his responsibility, and he had just received five million for free. In total, he had only invested fifteen million Hong Kong dollars in Zhong Shi. He thought for a moment and then asked in a low voice, "I have twenty million in cash now. Do you have any suggestions on where to invest it?"
"Invest in the Japanese stock market!"
Zhong Shi said this loudly without hesitation, causing even more heated discussions among those present.
"What? Invest in the Japanese stock market? Isn't that suicide?"
"Right now, the yen is being forced to appreciate, which will have a huge impact on its real economy. It's said that the Nikkei index is about to fall below ten thousand points. How is this possible..."
...
"Everyone, please calm down and listen to me!"
Zhong Shi frowned and said loudly, not mincing words. He was somewhat disappointed with the performance of these "elites." With so many people present, none of them had seen the huge opportunities brought by the appreciation of the yen.
"Have the Bank of Japan and the Ministry of Finance not seen the problems you've mentioned? Think about what the Bank of Japan and the Ministry of Finance will do."
In Japan, the Ministry of Finance is called the Ministry of Finance, and the central bank responsible for issuing currency is the Bank of Japan, which has some independence in its monetary policy. However, in the case of overall currency exchange rate fluctuations, the central bank has no choice but to align with the Ministry of Finance's fiscal policies.
Everyone looked at each other, unable to understand the logic.
"In the face of such severe currency value fluctuations, to maintain economic growth, the Ministry of Finance will inevitably introduce a series of fiscal policies to support export enterprises, expand domestic demand, and stimulate domestic consumption and investment, to minimize the impact of the yen's appreciation."
"In the near future, the Japanese economy will face sudden setbacks, but that's not the main issue. The most important thing is that the central bank must intervene, loosen financial policies, and lower interest rates, adopting an expansionary monetary policy to inject a large amount of liquidity into the market, while also relaxing capital account restrictions to allow foreign capital to flow into the Japanese market quickly and in large quantities."
"With the growth of bank credit, the reduction in loan interest rates, and the influx of foreign capital, where will this money flow? It's obvious that it will go to the capital market and the real estate market, as only these markets can absorb such a large amount of funds!"
"Think about it, in the context of the yen's appreciation, foreign capital will flow into Japan in astronomical amounts. This money, combined with the huge amount of funds generated by Japan's aggressive monetary policy, will certainly drive the Japanese capital market and real estate market. I can confidently say that in the coming years, the Nikkei index and the Japanese real estate market will grow at an incredible rate."
"This will be a grand feast of capital, and the fundamental reason behind it is that Japan's economy is overly dependent on exports and its political status is not high."
Zhong Shi concluded his long speech from a political perspective.
He took a sip of coffee, ignoring the petrified people around him, and sat down, closing his eyes to rest.
"Is this reliable?"
Liao Chengde poked the stunned Zhong Yi beside him and asked in a low voice. He didn't understand what Zhong Shi was saying, but he knew Zhong Yi studied economics and should be able to understand.
"Very logical, very reliable!"
Zhong Yi carefully recalled what Zhong Shi said and couldn't help but clap in admiration, thinking that even the top economists and strategists at major investment banks could only achieve this level.
In fact, most so-called economists and strategists couldn't match Zhong Shi, as these were real events from the future. Except for those who had been reborn, who would know what the future held?
"What do you think?"
Seeing Zhong Yi's shocked face, Liao Chengde believed him a bit, but since this was a major decision, he wanted to get more opinions.
"Brilliant, too brilliant! Unbelievable!"
Andrew, who had been gaping, suddenly came to his senses and clapped enthusiastically. He said, "Zhong, you're a genius. I think you could be the chief economist at Morgan Stanley!"
In the 1980s on Wall Street, Goldman Sachs wasn't the top investment bank; the prestigious and pure-blooded Morgan Stanley was. The then-dominant Morgan Stanley had a famous slogan: "If God wanted to raise capital, he would go to Morgan Stanley!" However, Goldman Sachs, which gained a significant share in European privatization, would soon surpass Morgan Stanley and become the top investment bank on Wall Street.
"Morgan Stanley?"
Zhong Shi, who had been dozing, curled his lip and asked indifferently. His feelings towards Morgan Stanley were complex. As his former employer, he was grateful to Morgan Stanley, but in this life, he no longer wanted to work for others.
In the financial food chain, the top tier is the rating agencies, followed by hedge funds, and then the major international investment banks and other financial institutions. Zhong Shi had no intention of working in the lower tiers of the food chain.
If Andrew could find a job on Wall Street, he wouldn't have come to work overseas. In his view, the American financial market and institutions were the best, and indeed, the largest and most developed financial institutions in the world were in the United States.
"Mr. Zhong, how do you think one should cultivate the right investment approach?"
Andrew didn't mind, assuming Zhong Shi didn't know the power of Morgan Stanley. Zhong Shi's logical thinking had greatly impressed him, and he had a feeling that the Japanese economy would develop as Zhong Shi predicted.
"It depends on what you invest in. I suggest you invest in stocks and bonds! The futures market is too risky, and without sufficient funds, it's best not to get involved."
Zhong Shi was also interested, as it was rare for someone to be interested in his ideas, and he certainly wouldn't hold back.
"Stocks and bonds? For example?"
Andrew tilted his head and thought for a moment, then asked a question that made Zhong Shi want to bleed. In Zhong Shi's view, the next question should have been why he chose stocks and bonds, but instead, Andrew asked about a specific stock, just like most speculators in the future.
"Think about it, the Chinese mainland is now implementing 'reform and opening up.' What kind of reaction will this have on the U.S. capital market?"
Zhong Shi asked in return.
"Ah? There will be a reaction?"
Andrew was puzzled. In his view, the U.S. capital market and China were completely unrelated, and at the time, few U.S. companies had entered the Chinese market.
"Yes, not now, but in the future! Think about it, if Coca-Cola enters the mainland market, how many bottles will it sell in a year? Even if every person in China drinks one bottle a year, that's over a billion bottles, which would greatly boost the company's performance."
Zhong Shi said angrily, feeling helpless with the clueless Andrew. "When it comes to investment, you need to consider the market, economic development, consumer demand, seasonal cycles, growth prospects, legal policies, and more. You know that the Chinese mainland has just opened up, and it will be a huge market. Any company that can gain a share of this market will see significant growth!"
Zhong Shi was right. In the future, a significant portion of the profits of some multinational corporations came from the Chinese market, and even some European luxury brands relied almost entirely on exports to China.
"I think I understand!" Andrew said thoughtfully. (Please click, recommend, and collect, thank you very much!)