The international crude oil market has been in a bear market for 20 years. Now that the boss has set his sights on the international crude oil market, it goes without saying that the boss has seen the trend of a surge in international crude oil prices. Therefore, Henry made this conclusion without hesitation.
Yang Jing nodded with satisfaction. "That's right, Henry, your judgment is correct. This time I plan to go long on international crude oil, but this time it will last longer. I think in the next five to six years, the international crude oil market will usher in a big bull market. This is the main reason why I set my sights on the international crude oil market."
"Boss, can I ask you what is the basis for your judgment that the international crude oil price is about to rise?" Henry asked curiously.
"That's simply the Bush administration's attitude toward terrorism!"
"Are you talking about the 9/11 incident? But that was more than a year ago." Henry asked in confusion.
Yang Jing glanced at Henry and said, "Have you noticed that the federal government's attitude towards Iraq and Afghanistan is changing dramatically? Especially since George W. Bush, who has a strong personality, had just taken office and encountered the 9/11 incident, he would never give in to this matter. So, like his father, Bush will choose to use force against foreign countries, and the target is Iraq!"
Henry smiled bitterly and shook his head. He dared not doubt Yang Jing's judgment anymore.
Yang Jing continued, "Once the Bush administration really takes action against Iraq, international crude oil prices will inevitably rise. However, this time the rise will not be just a short-term upward breakthrough and then a rapid decline like thirteen years ago. I think that once the Bush administration really takes action against Iraq, international crude oil prices will usher in a stage of sustained rise, and I think this period of time will be enough to last for five or six years. At the same time, the price of international crude oil will rise to an unbelievable high level."
Henry nodded and asked, "Boss, what should we do? Should KY Investment Fund manage this market, or should we let Atlantic Capital or Pacific Capital manage this market?"
Yang Jing tapped the table with his right index finger several times before saying, "Let Niam be in charge of this market. David has other tasks. As for KY Investment Fund, it also has other tasks!"
This reminded Henry of the plan for the Dragon Fund in the next ten years that his boss had mentioned three years ago, so he hesitated and asked, "Boss, the other two tasks you mentioned are international gold and the global stock market?"
"Well, if the international crude oil price really enters a bull market, then the international gold price will inevitably rise as well. This is our opportunity, so I plan to let David's Pacific Capital be responsible for the international gold market. As for you, you will be mainly responsible for the global stock market."
Yang Jing's words were very clear, especially regarding the operations in the international gold market. Henry knew what he meant as soon as he heard it.
Everyone knows that fluctuations in international oil prices will directly affect the development of the world economy, especially the US economy. At this stage, the US economic output and crude oil consumption are both ranked first in the world, so the US economic trend directly affects changes in US asset quality, thereby causing the US dollar to rise or fall, and thus causing gold prices to rise or fall.
According to the International Monetary Fund, every $5 increase in oil prices will reduce the global economic growth rate by about 0.3 percentage points, and the US economic growth rate may drop by about 0.4 percentage points. When oil prices continue to soar, the International Monetary Fund will also lower its expectations for future economic growth. Oil prices have become a "barometer" of the global economy. High oil prices also mean increased uncertainty in economic growth and gradually rising inflation expectations, which in turn push up gold prices.
Therefore, there is a positive correlation between gold and oil, that is, the price of gold and the price of oil usually change in a positive direction. The rise in oil prices indicates that the price of gold will also rise, and the fall in oil prices indicates that the price of gold will also fall.
If the international oil price really enters a rising bull market starting from this year, then the international gold price will inevitably continue to rise along with the rise in the international oil price. There has always been a close relationship between the two.
However, Henry was a little confused about what the boss was talking about the global stock market.
However, since the boss has already made the arrangements, all they need to do is follow the boss's orders!
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