My absurd experiences in North America over the years

Lucy's life returned to the track arranged by her family.

In Nashville, the Forrest family name represents absolute authority.

Although the family's core business is a vast medical conglomerate, ranging from the largest private hospitals in the United States to pharmaceutical research and development, it almost monopolizes mid-to-high-end medical resources in Tennessee, but the tentacles of capital are always omnipresent.

Instead of placing Lucy directly into the core medical management team, the family arranged for her to gain experience at a real estate investment company under the family.

Healthcare real estate in Tennessee is the family's core business, but commercial real estate and high-end residential properties are the key to the real estate industry's cash flow. Cole warned his sister not to be complacent.

In the late autumn of 2006, the streets of Nashville were covered with golden fallen leaves.

Despite warnings of a housing bubble bursting across the United States and echoing on Wall Street, the greed of capital did not deter them.

In Tennessee, especially in cities like Nashville with relatively diverse economic structures...

The real estate market is still maintaining a final illusion of prosperity.

Therefore, after understanding the situation, Li Fu was not in a hurry to have Lucy liquidate her assets in a timely manner.

Lucy drives her red Porsche Cayenne every day through the affluent areas of Green Hills and Belle Meade.

She is busy evaluating several acquisitions of high-end villa projects and medical-supporting commercial centers.

The work is demanding and tedious, but she enjoys it immensely.

When Li Fu arrived in Nashville, although she could no longer be by his side all day like before, she paved the way for him in her own way.

The day after they parted, two black luxury cars parked in Li Fu's yard.

A Cadillac Escalade and an Audi A8.

This was something Lucy specifically instructed her to do.

In Nashville, not owning a nice car not only makes getting around inconvenient, but can also lead to being looked down upon.

Accompanying them were two assistants, a man and a woman, who had been rigorously screened by the family's security department. Both were graduates of prestigious local universities, efficient, and taciturn.

He was specifically responsible for handling Li Fu's daily chores and vehicle maintenance.

"Boss, this is what Miss Forrest specifically instructed," Anna, the female assistant, placed two brand-new car keys on the table, her tone respectful. "During your stay in Nashville, you need to travel comfortably and safely."

Li Fu looked at the car keys, a slight smile playing on his lips.

He knew that Lucy was carefully protecting his self-esteem.

However, this is not what he urgently needs right now.

What he needs to do immediately is get his entry ticket to the financial market.

Three days later, he rented an office with a wide view in a Grade A office building in downtown Nashville, which was also owned by the Forrest family.

The company registration went very smoothly.

Cole provided him with many advantages.

The license and approval process were completed quickly.

After the company was registered, the funds arrived as expected.

This young upstart from the Forrest family personally handed him a signed investment agreement.

"This is five million dollars, seed funding allocated to you by the family venture capital department," Cole said, his eyes scrutinizing. "According to Lucy, this money is considered angel investment, and we will own 30% of the shares."

This price is quite a good deal.

Without any clear understanding of Li Fu's financial capabilities, to outsiders, the probability of losing five million was extremely high.

If it weren't for Lucy's influence, who would have given him five million?

30% of the shares represent a certain percentage of the capital...

That's still very low.

Because Li Fudong could only scrape together one million US dollars.

For the past six months or so, he hasn't focused on making money.

The main sources of the one million came from dividends from the Los Angeles liquor company, bodyguard salaries, and checks that Winslop had given him.

"OK, you decide the shares," he said without further ado and readily signed the contract.

He now has six million dollars in his hands.

This is all the initial capital I have for my investment career so far.

This amount might be a drop in the ocean for a family of Forrest's stature, but for him, it is the only fulcrum to leverage the capital market in the future.

The office offers a wide view, with floor-to-ceiling windows overlooking the iconic Cumberland River winding through the city.

Li Fu sat behind a large desk, with densely packed candlestick charts flashing on the three monitors in front of him.

Instead of investing in stocks or dabbling in complex financial derivatives, he turned his attention to the world's largest financial market—foreign exchange.

The end of 2006 was a time filled with temptations and traps.

At this time, market views on future trends are complex.

Discussions about the United States’ twin deficits have never stopped, and many analysts on Wall Street are saying that the dollar is about to peak.

However, technical analysis is never the deciding factor.

The key lies in the Federal Reserve's attitude. New Fed Chairman Bernanke has only recently taken office, and the market is speculating whether he will continue to raise interest rates in an effort to curb inflation…

They will still turn to easing in order to save the real estate market, which is already at risk of bursting its bubble.

Interest rate hikes will appreciate the dollar, but will prematurely burst the real estate bubble.

A relaxed approach is conducive to improving the investment environment.

However, inflation will continue to rise, and bread prices will soar.

This divergence has led to sharp fluctuations in the dollar-dominated exchange rate market.

The euro fluctuated between 1.25 and 1.30 against the dollar, with both bulls and bears testing each other's limits.

Even the most seasoned industry veterans can only predict that the dollar will fall in the future, but no one dares to be sure how deep it will fall or how long it will last.

However, Li Fu, looking back in the mirror of history, clearly knew the undercurrents beneath the calm surface.

At this moment, the US housing market bubble has expanded to its limit, and the subprime mortgage default rate is quietly rising.

Although it is not apparent on the surface, the very fabric of the financial system has begun to deteriorate.

The US dollar is expected to experience an unprecedented collapse in the next year or so.

He took a deep breath in front of the computer and his fingers flew across the keyboard.

"Boss, the prime brokerage account with JPMorgan Chase has been opened," the male assistant Thompson reported as he walked in. "As per your request, we have applied for the highest level of leverage."

"Has the leverage ratio been confirmed?" Li Fu looked up slightly.

"Confirmed, the leverage can reach up to 400 times," Thompson presented the relevant information.

Li Fu nodded.

Four hundred times is a crazy number outside the financial circle, and even to ordinary people, it is tantamount to suicide.

If the market experiences a sharp reversal, his six million yuan principal will instantly be wiped out.

However, this is actually the norm in the financial world.

Some financial products have leverage ratios that can even reach over a thousand times.

Li Fu chose 400 times leverage because it was the only way to maximize existing funds and the only shortcut to making huge profits.

At this time, the euro-dollar exchange rate was hovering around 1.2800.

The market is divided, with some predicting a decline and others believing in a strong rebound.

Perhaps only Li Fu can be certain that the current sideways movement and struggle are merely preparations for an unprecedented crash.

He opened the trading terminal and, without hesitation, chose to buy rather than sell.

The strategy is to go long on the euro and short on the dollar.

In other words, the overall outlook is bullish on the euro and bearish on the dollar.

The position size is 5%.

With a principal of six million, using three hundred thousand US dollars as margin, and then leveraging four hundred times, a nominal value of one hundred and twenty million US dollars was created.

This is an initial probe.

He plans to increase his holdings at the appropriate time.

On the computer screen, the red candlestick chart began to move.

Li Fu leaned back in his chair and, unusually, lit a cigarette. Amidst the swirling smoke, his eyes were as calm as ice.

There is still more than a year to go before the global financial crisis of 2008.

However, he knew that the dollar had already peaked for the time being.

This is not because he has great foresight or a deep understanding of economics and finance.

It's because he's a time traveler.

As a business investor who had previously dabbled in this industry, he knew the future trends.

Although the details are not so clear, the general direction and main rhythm are correct.

Even if George Soros (the biggest financial tycoon in the foreign exchange market) came, he would dare to gamble against him.

In the last two months of 2006, Nashville was cold and damp, with a thin layer of fog covering the Cumberland River.

But in Li Fu's office, the atmosphere was so warm it seemed to evaporate all the chill.

Just as he predicted, the foreign exchange market has been caught in a suffocating "meat grinder" situation during this period.

The euro has been fluctuating wildly between 1.2700 and 1.3000 against the dollar, leaving Wall Street analysts bewildered by this chaotic volatility. One day they're predicting the dollar may have bottomed out, and the next they're predicting a strong euro rally.

However, for Li Fu, who held 400 times leverage and had a god-like perspective, this market situation was nothing short of a meat grinder...

This is clearly a money printing machine.

"Boss, the volatility is too high right now. Should we reduce the leverage, or..." Thompson stared at the wildly fluctuating numbers on the screen, too nervous to breathe.

As an assistant, he was terrified as he watched the numbers fluctuate far beyond his annual salary.

"Don't panic," Li Fu said, holding a cup of coffee, his gaze as calm as if he were admiring the scenery in his own backyard. "What is our current position?"

"As you instructed, we have kept it below 5% at all times," Thompson reported truthfully.

"That's right," Li Fu smiled slightly.

To the untrained eye, 400x leverage is gambling, but to an expert, it's a mathematical game.

With 400x leverage, a 5% position only requires 1.25% of the margin.

This means that even if the market suddenly goes crazy and fluctuates wildly by 70 or 80 points, his account will not even be close to being liquidated.

He has unlimited room for error; his only limitation is his greed, which leads him to blindly increase his positions when he sees profits.

But he is not greedy; he has enough certainty.

On December 15th, US manufacturing data unexpectedly rebounded, causing the dollar to surge and the euro to fall to 1.2750 against the dollar.

Dollar short sellers in the market were in despair, with stop-loss orders pouring in.

At that moment, Li Fu pressed the "buy" button.

"Enter at 1.2755 and add 2% to your position," he quickly instructed.

Even experts at this point would see this as gambling on the bottom.

Even the most experienced traders have to carefully consider this before making such a decision.

But Li Fu knew that the price would definitely rise again in ten days to half a month at most.

He doesn't remember the specific details.

However, buying on dips is definitely the right decision.

Sure enough, the upward trend came quickly, and just three days later, on the eve of Christmas, the exchange rate rebounded to 1.2980.

Li Fu decisively closed out some of his positions.

Wait patiently for the next low point to buy again.

In just two weeks, his account net value increased by nearly 20% using only this method.

However, he did not choose to withdraw the money, but instead reinvested the profits, keeping it at around 5%, and never exceeding 10% of his position.

This is a terrifying compound interest model in the financial market.

If it can guarantee continuous profitability, it's even more terrifying than loan sharking.

During these volatile two months, Li Fu, a novice trader, was like a tireless harvester, buying at 1.2750 and selling at 1.2980, buying at 1.2800 and selling at 1.2950...

Basically, buy on dips and sell around 1.30.

Then, in the next market fluctuation, use even more capital to continue rolling over the funds.

Each time, he used no more than 10% of his total capital, and most of the time it was 5%. With the principal safe, the 400x leverage amplified his returns to the extreme.

The time has come to the last day of 2006.

The streets of Nashville were decorated with lights and lanterns, and people were immersed in the joy of welcoming the New Year.

Li Fu sat alone in his office, looking at the numbers in his account. Even he was momentarily stunned.

After two months of repeated buying low and selling high, leveraging the amplification effect of 400x leverage and the snowballing effect of compound interest, his initial capital of 600 million has now become 2400 million US dollars.

That's a full four times, a 300% return.

This achievement would be astonishing even on Wall Street.

What's terrifying is that this isn't even the limit; if it weren't for controlling slippage and liquidity, this number could be even higher.

"Happy New Year, boss," Anna said as she entered. "Miss Forrest came by and asked me to give this to you."

Li Fu took it and looked at it.

Lucy gave him an invitation, presumably to a local Tennessee celebrity party.

"Okay, I understand. Happy New Year to you all too." He didn't get up, but instead asked Anna to refill his coffee.

The foreign exchange market will be closed on New Year's Day.

He originally had time to attend, but he felt it wasn't the right time yet.

The global financial markets will quickly recover from the holiday after New Year's Day, and he needs to carefully recall the information he learned when he first got involved in foreign exchange.

He needs more precise details, even the smallest detail, as it could make him a lot more money.

Sure enough, the day after New Year's Day, a sense of unease began to spread in the financial sector.

The Institute for Supply Management (ISM) reported an unexpected contraction in its manufacturing index, the first such contraction since 2003.

Subsequently, data from the real estate market began to deteriorate.

For the first time, economists who were still dreaming of a "soft landing" showed signs of panic.

Li Fu sat in front of the screen, a cold smile playing on his lips.

"It's finally starting."

This time, he no longer needs to buy low and sell high.

Instead, they continued to buy on dips.

If he remembers correctly, the euro/dollar exchange rate will rise from around 1.3 to 1.6 in the future.

This time, it's no longer a harvest in a volatile market, but a "slaughter" in a one-sided trend.

The market seemed to heed his command.

The US dollar is like a punctured balloon, falling helplessly.

1.3100...1.3150...1.3200...

In just one week, the euro surged against the dollar.

On January 12, when the euro touched a high of 1.3300, Li Fu's account balance had exceeded $50 million.

It only took a little over two months to go from 600 million to 5000 million.

Li Fu turned off the screen and stood up.

He picked up his phone and dialed Lucy's number.

"Li, you finally have some free time? I was so embarrassed to bother you the other day because you were so focused."

Lucy's voice carried a hint of weariness, but was mostly gentle.

"The investment has yielded initial returns, and I have finally lived up to your trust," Li Fu felt that the time had come.

He had a bold idea.

Since it's an investment company, financial investment is investment, but isn't art investment also investment?

At this very moment, Nashville seems to be hiding a superstar with enormous potential, a future global superstar.

The return on investment in her is likely to be more than just money.