Next, Li Nanxing ate there, while Zhang Siheng told the wealthy junior schoolmate in front of him about his views on the current financial situation in the United States and the world.
Zhang Siheng is indeed worthy of being a future financial tycoon!
Although he has not yet reached the sophistication and maturity of the future, his financial knowledge and analysis of the current financial situation are still very accurate!
He began by analyzing the booming high-tech sector in the United States. "Traditional sectors like gold, oil, and real estate have already reached their peak. Unless you hold on to them for the long term, the short-term growth won't be significant. However, I think the emerging electronics sector is very worth investing in. Many high-potential companies are only two or three years old. If you buy them now at a low price, they'll grow to incredibly high values in just a few years! Even beyond measure!"
"Decades ago, giant computers were only available to national institutions, and individuals faced significant difficulties in using them. However, after decades of development, computers have become smaller and smaller, and now many models of personal computers have been released, making them easy to buy for personal and family use! With continued research and development, computers will undoubtedly become smaller and cheaper, and the market prospects will be enormous!"
When Zhang Siheng said this, there was both passion and regret in his eyes.
Although he saw the prospects of this industry, he also knew that this period was the starting stage of this industry. If he had money to invest, he would definitely invest all his money without hesitation!
But, what a pity!
He has to work hard to earn his living expenses, so where does he get the money to invest?
Of course Zhang Siheng thought about raising funds or looking for investors, but the group of rich second-generations he made friends with would rather use the money to go to bars and pick up girls, and were not willing to make any investments at all. They would rather ask their families for money to spend on wine and women than do anything practical!
Let’s talk about finding investors!
When people saw his Asian appearance and the fact that he was a college student who had not yet graduated, they simply didn't bother to listen to what he said.
This series of events made Zhang Siheng very discouraged.
Now, he actually ran into a wealthy schoolmate, and of course he didn't want to miss this opportunity!
I quickly told everything I knew, as if I was afraid that if I spoke too late, I would miss the opportunity to buy stocks of these industries at low prices!
Seeing that the other party also attached great importance to the development of the science and technology industry, Li Nanxing immediately felt that the vision of this future financial tycoon was not to be underestimated.
Although the United States is now leading the world in the field of science and technology, the prices of personal computers on the market are currently inflated and not affordable for ordinary families. In addition, the functions currently possessed by computers are currently only computer and basic document functions. Except for professional users with needs, ordinary families may not be willing to spend a lot of money to buy a computer that they may not need!
Therefore, the speed of popularization of computers is still very slow. Only when the functions of computers become more complete and more colorful, will they gradually be accepted by the public!
So even though several large technology companies in the United States are vigorously developing research on personal computers, many investors are still in a wait-and-see stage. Therefore, the stock prices of many technology fields are not very high at this time.
Therefore, buying at a low price at this time is definitely a sure-win deal!
Zhang Siheng has this confidence!
After sharing his insights on the technology sector, Zhang Siheng began to share some insights on the US financial industry:
"A few years ago, the ruling government began relocating domestic factories to third world countries. These capitals that build factories in third world countries not only acquire large tracts of land at low prices, but also employ even cheaper labor. Local raw materials are also inexpensive. With strong government support and such low costs, many domestic factories will undoubtedly relocate en masse, leading to a rapid decline in domestic industrial capacity! To prevent the outflow of US dollars, the authorities will undoubtedly implement a high-interest rate policy! This is when domestic stock funds will skyrocket!"
Awesome, you guessed it right!
Li Nanxing wanted to give a thumbs up to Zhang Siheng's sharp intuition!
Because just two years later, in order to collapse the Soviet Union's financial system, the Federal Reserve adopted an extremely aggressive monetary tightening policy, and the U.S. federal funds rate soared from 11.2% in 1979 to around 20% in 1981.
By 1991, in order to bring down the Soviet Union, the Federal Reserve directly raised interest rates to an astonishing 25%!
This move actually directly led to dramatic changes in Eastern Europe and the disintegration of the Soviet Union!
Think about it, starting from 2023, the Federal Reserve raised interest rates eight times in a year, and just lowered the interest rate to 5.5%, which made life difficult for China and even the world.
In the 1980s and 1990s, the Federal Reserve actually raised interest rates to 25%, which was really crazy!
It would be strange if the Soviet Union didn’t collapse!
In fact, when Li Nanxing learned that the Federal Reserve had raised interest rates so high, he just wanted to deposit his money in the bank and earn interest.
But when I think of the United States, which is unethical and has caused banks to go bankrupt one after another at the speed of light after raising interest rates, it has achieved the act of embezzling depositors' deposits.
Li Nanxing hesitated!
Although! She could secretly steal her money later, no, take it back!
But she still feels disgusted!
I just wanted to honestly deposit my money into the bank to earn some interest. It would have been fine if you didn't intend to pay the interest, but you actually wanted to swallow up my principal as well. That's really too much!
Now that Zhang Siheng has such forward-looking insights, perhaps he has other ideas. Li Nanxing is a little looking forward to it!
Continue read on readnovelmtl.com