Everything in the world has a cycle.

Everything has a cause and a result. There is a cycle of cause and effect, reincarnation, and a pattern.

Just like the financial market, 10 years is a cycle, and there will be a disaster in about 10 years.

In 1998, a financial turmoil broke out in Southeast Asia and soon spread to the entire Asia. Financial giant Soros took the opportunity to attack the Thai baht and triggered a financial crisis. The purpose was to "snipe" the Hong Kong financial market!

According to calculations, Soros borrowed approximately 120 billion Hong Kong dollars to short the Hong Kong dollar and more than 6 billion Hong Kong dollars to short the Hang Seng Index futures. He initially borrowed more than 70 billion Hong Kong dollars worth of stocks to short, and then borrowed more The equivalent of nearly HK$100 billion in stocks was shorted. Calculated at an annual interest rate of 10%, the interest would be nearly HK$30 billion. There is no profit from shorting the Hong Kong dollar.

However, the return rate of shorting stock index futures is nearly 30%, the total value of stock index futures is nearly 60 billion Hong Kong dollars, and the profit is nearly 18 billion Hong Kong dollars. The return rate of shorting stocks is nearly 30%, the total market value of stocks is 170 billion Hong Kong dollars, and the profit is nearly 51 billion Hong Kong dollars. Therefore, Soros's total profit is 18510-300≈39 billion Hong Kong dollars, equivalent to about 5 billion US dollars. In reality Soros should make more.

In 2008, a serious subprime mortgage crisis broke out in the United States. A large number of people were unemployed, many financial companies collapsed, and even Wall Street giants were not easy.

During that year, we saw the emergence of a large-scale situation in the United States, and saw that the Federal Reserve tried every means to save the market, and even launched a quantitative easing policy to save the situation.

That crisis was caused by subprime loans, so it was also called the subprime crisis.

In fact, such crises are not limited to 1998 and 2008.

We find that every 10 years or so, there will be global economic shocks, large and small! For example:

The "Black Monday" in the United States 30 years ago;

The European currency crisis and Latin American crisis 40 years ago;

Their causes are different. The severity varies, but the pattern of this cycle is roughly the same.

And now, in 2020, the world has once again entered a Great Recession, the Great Depression, and this crisis was caused by the new crown, which has led to a sharp decline in the global financial market and economy. situation.

It can be called one of the most serious "disasters" in history.

But looking back, you will find that every crisis is also an opportunity!

Only those who can truly grasp the crisis can hope to change the trajectory of life.

Don’t ask whether history will repeat itself?

Just know not to miss a crisis!

Don’t miss every great opportunity in life during a financial crisis!

Buffett said:

In my life, I have never met a rich man who has never lost money! But I met many poor people who had never lost a dime. Only those who dare to invest have the opportunity to become rich! People who dare not invest, even though they have never lost money, are destined to not win.

Let me give you another word here:

If you regard human life as a game, then the cost of trial and error is actually not high, but the cost of missing out will be very high!