Chapter 87 The Eighty-Seventh Day of Not Running Away The Eighty-Seventh Day of Not Running Away...
Darren, Matt, and the others were somewhat resistant to seeing cicadas in the hospital.
Darren said to Matt, "That woman will definitely laugh at us."
Matt said, "Joke it is, but I'd like to know what she's going to do next."
This time, the group treated Wen Chan with much more politeness and respect.
"Please sit down, don't be shy," Wen Chan said with a smile.
Matt sat down with Darren and the others. The group had brought a bouquet of flowers, which Matt handed to Wen Chan: "Ms. Wen, I heard your surgery was very successful. Congratulations!"
"Thanks."
Wen Chan thanked him, looked at the flowers—the roses were quite nice—and casually handed one to Jiang Zihan, asking, "How's the stock market been lately?"
Matt said, "Great, there are signs of recovery, and everyone is very happy."
Their salaries are tied to profits; the more they earn, the more bonuses and dividends they receive at the end of the year.
"That's good. How are energy stocks doing now?"
Wen Chan curled her lips into a wicked smile and said.
Matt and Darren exchanged a glance, both feeling somewhat awkward.
Darren scratched the back of his head and tilted his head: "Well, I fell a little."
If it were just a slight drop, it wouldn't be so embarrassing.
The main reason is that the stock market is gradually improving. In the past two weeks, many sectors have shown signs of recovery. Although it is not as obvious as the tech stocks, it is still hopeful.
But energy stocks, like an exhausted ox, not only failed to rise but stubbornly sank downwards, which was frustrating to watch.
Darren immediately flattered, "It's all thanks to your foresight, Miss Wen. This investment has surprised our LPs."
Matt said, "Microsoft and Intel stocks are rising steadily. When do you plan to sell, and at what price?"
Wen Chan took a sip of water, thought for a moment, and shook her head, saying, "I don't plan to take action."
Matt was stunned. If this had happened before, he would definitely have been dissatisfied, but now, Wen Chan's vision had proven her strength.
"May I ask why?"
Wen Chan asked, "What do you think of these two companies? What do you think of their products?"
Matt shrugged. "Not bad, very advanced, just a bit pricey."
Darren added, "That's right. It costs over a hundred dollars to install Microsoft Windows software, and Intel chips aren't cheap either."
"Is this why you think we need to act quickly?" Wen Chan crossed her arms and rested them on the table. She was dressed in casual home clothes, but her aura was still astonishing.
Matt frowned: "The PC market is only so big. Microsoft and Intel have both launched new products this year, so it's normal for their stock prices to rise in the short term, but the market will soon be saturated."
Wen Chan made a stop gesture.
Matt said, "Tell me your opinion."
Wen Chan said, "My view is that the rise in Microsoft and Intel's stock prices has only just begun. You are right to think that there are not many PCs on the market, but have you ever thought that the personal computer market will gradually expand in the future? This small market of a few million may become a market of trillions of units."
“How is that possible? Computers are so expensive these days!” Darren expressed his skepticism without hesitation. “My niece bought a computer that cost a thousand dollars. Not to mention China, even in the United States, only a small number of people can afford it!”
Don't be fooled by the fact that Americans seem to earn a lot of money; it's actually only a small percentage of them.
In the United States today, $1,000 is roughly equivalent to three months' income for a family. Considering the financial situation of American families, most of them do not have savings, meaning it is difficult to set aside three months' income to buy a PC.
Wen Chan didn't say anything, but directly took out a document and handed it to them. "This is the data I found in the document, the car market consumption and car prices in the United States in the 70s, 80s and 90s. You can use the car information to compare with the computer."
The data speaks for itself: since 1970, the US auto market has expanded rapidly, and car prices have gradually decreased.
Looking at the data, Darren and Matt had to admit that Wen Chan's words made sense.
Wen Chan said, "The reason computers are so expensive now is because the market is too small. If the market grows, it will achieve economies of scale. I don't need to explain that, right? The more you produce, the lower the cost. Moreover, I believe IBM will definitely not be satisfied with the current market size. Their expansion is inevitable. Intel and Microsoft, as supporting software, will also benefit from the rise in their stock prices. Nobody knows how high their stock prices will eventually go."
In fact, until she traveled back in time, the stocks of these two companies were still in high demand, and the annual dividends alone were considerable.
"What you're saying are all just your guesses."
Matt reminded Wen Chan of the Dao.
Wen Chan chuckled: "If I've analyzed it to this extent and you still insist on your own ideas and want to sell your Microsoft and Intel stocks, then I can guarantee that in the next twenty years, you will become the most famous fools on Wall Street."
Zhang Yurong made a decisive decision: "I will not sell these stocks."
"Congratulations, you'll be glad you made this choice in the future."
Wen Chan shrugged.
Matt and Darren exchanged a glance, both looking somewhat helpless.
Matt said, "You sent us here just to persuade us not to sell our shares? What's the point? If you just tell May, she'll never agree to let us sell."
Matt's tone carried a hint of dissatisfaction.
Wen Chan said, "No, that's not it. I called you here because there's something I need to tell you. With stocks, you can only make big money by holding them for the long term. You can't see any results in the short term."
Matt thought to himself, "This doesn't even show the results."
If they could achieve this, they would be laughing all the way to the bank.
"You want to trade futures?" Matt was still quite sharp.
If it's not stock trading, then it must be futures trading.
Wen Chan said, "I'm somewhat interested in the soybean market."
“If you short the soybean market, you can definitely make a lot of money,” Matt said excitedly, suddenly intrigued.
Wen Chan smiled slightly at him.
Matt realized something was wrong and frowned: "You're not planning to do something big, are you?"
Wen Chan clapped her hands in encouragement, "Congratulations, you've learned how to answer first!"
Matt, Darren, and the others fell silent.
Matt picked up the coffee on the table and took a big gulp: "You're not kidding, are you?"
Wen Chan said, "I never joke about professional matters."
Matt wanted to laugh inwardly.
major.
She hasn't even taken the securities trading license exam yet, and she doesn't even have a university diploma.
If it weren't for the stock market slump, Matt and others would have already jumped ship long ago if Zhang Yurong had parachuted Wen Chan in.
"What do you want to do? How much do you want to buy?"
For some reason, Matt felt like he was losing his mind at that moment.
He actually wanted to hear what Wen Chan's plans were.
Wen Chan looked at Zhang Yurong.
Zhang Yurong and Mi Lin reached out and took several confidentiality agreements, handing them to Darren and the others.
Darren and the others turned pale when they saw the confidentiality agreement.
Darren, in particular, exclaimed, "Are you questioning our character and professional ethics?"
Wen Chan thought to herself, "Wall Street traders have this kind of thing?"
Zhang Yurong said, "This is very important because this transaction will involve at least hundreds of millions of US dollars. I'm sorry, you have to sign, or you can choose to leave. I will arrange for HR to arrange short-term paid leave for those who choose to leave."
The conditions offered by Zhang Yurong were not excessive; in fact, they were quite humane.
When Darren and the others heard the amount of hundreds of millions of dollars, they were all stunned. Darren's eye twitched. "Hundreds of millions of dollars? It's already the end of May, long after April Fool's Day."
So, you don't want to sign?
Wen Chan immediately reached out to take the confidentiality agreement.
Darren quickly pressed down on the agreement, "Sign, I'll sign!"
joke.
This is a transaction worth hundreds of millions of dollars. Even in Wall Street, a place where money is not valued, it is rare to see such a high transaction amount.
After everyone had signed their names, Wen Chan said, "I checked the temperatures in Illinois from the end of last year to now. The temperatures are normal, but the rainfall has clearly decreased."
Zhang Yurong interrupted, "Could you explain it in simpler terms?"
Wen Chan said, "Illinois is a soybean producing state and also home to the CBOT Chicago Board of Trade. Soybeans need plenty of water to grow. If rainfall decreases, soybean production will decrease, and soybean prices will rise."
"Do you have the data?" Matt asked again.
Wen Chan didn't say anything, but took a document from the side and handed it to him.
Matt opened the file, glanced at it, and then looked up at Wen Chan.
He wondered where this woman got the information from.
"You can compare it; although this year's rainfall is not significant, it is still a clear decrease compared to previous years."
Wen Chan said, "Currently, soybean prices are low, so no one has experienced this yet. However, I estimate that with rising temperatures and reduced rainfall, drought is inevitable."
Wen Chan took a sip of water. "My plan is for us to bring money to the CBOT to buy up all the soybeans in advance and hold them in stock."
“Even so, that would only amount to a few million dollars at most.” Matt calculated quickly, raising his eyebrows. “It’s a long way from a hundred million.”
"Yes, so I plan to have the fund bet against Wall Street financial institutions and securities firms."
Wen Chan smiled slightly. "Using OTC, which is a form of off-exchange derivatives betting, we go long and they go short, using leverage. These institutions will definitely be interested in this transaction."
She handed Matt the list she had prepared in advance.
Matt glanced around and spotted several Wall Street financial giants. He pressed his tongue against his palate, as if he could smell the bloody scent of money in the air.
"The margin we need to provide for this bet is also substantial. We have to pay out every time the price drops before it rises. This margin is at least tens of millions of US dollars."
Matt asked, "Where will this money come from?"
Wen Chan looked at Zhang Yurong.
Zhang Yurong said, "Money is not a problem, I will find a way. Can you do as Miss Wen says?"
able.
Of course you can.
As a trader, who would miss out on such a big deal?
They will make a name for themselves on Wall Street by making money from those financial giants!
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