The background of guy's deal
Guy's transaction took place on 1987. At that time, the Japanese stock market experienced a five-year rise, which made many Japanese entrepreneurs extremely rich. Among them, the Japanese rich guy is the richest one.
However, from June 5438+0987 to June 5438+00, the American stock market crashed, triggering a global financial crisis. The crisis also spread to the Japanese stock market, causing the stock market to plummet. Guy's wealth also suffered huge losses.
The operation steps of guy trading
After the stock market crash, Guy decided to take action to protect his wealth. His operation steps are as follows:
1. Buy the copper futures contract of new york Intercontinental Exchange.
2. Mortgage these contracts to Bank of America to get loans.
Use these loans to buy Japanese stocks.
This operation seems simple, but it has a very important feature: Guy's investment is not based on the value of the stock itself, but on the price of new york copper futures. This investment strategy is called "arbitrage".
The result of guy's deal
Guy's investment strategy was very successful. By the end of the year, he had earned 1987 USD. This also makes him one of the richest people in the world.
However, Guy's success has also caused some controversy. Some people think that his investment strategy is to take advantage of the leverage effect of banks, which is very dangerous. If the market fluctuates greatly, his investment will suffer huge losses.
The impact of guy's deal
Guy's transaction not only created the largest private wealth in history, but also had a far-reaching impact on the financial market.
Firstly, the effectiveness of arbitrage trading is proved. Arbitrage trading refers to the trading strategy of finding the price difference between different markets to obtain profits. Guy's investment strategy is arbitrage trading.
Secondly, it also proves the danger of leverage effect. Leverage refers to the practice of increasing investment income by borrowing money. Although this practice can increase the income, it will also increase the risk.
Finally, Guy's transaction also triggered a reflection on the financial market. Many people began to question the stability and transparency of financial markets, and believed that financial markets needed stricter supervision and management.