Extraordinary Genius Chapter 267 – Shorting Crude Oil

Feng Yu went to Hong Kong again. This time, Feng Yu noticed that the four brothers of the Fu family were there to receive him.

Fu Rongjing had lost 400 million HKD and the second and third brothers knew about it. But their eldest brother did not even get back at Feng Yu. Instead, he bowed down to Feng Yu. This was something which they do not understand.

They knew their eldest brother well. As the head of the Fu family, he had caused a few companies which tried to cheat him bankrupt. Why didn’t their eldest brother do the same thing to Feng Yu this time?

After they asked their eldest brother, they found out that their eldest brother did not want to offend the second generation of China’s officials. Furthermore, Feng Yu had shown his sincerity and told the Fu family about the gold market. The Fu family had invested in the gold market and made more than 400 million HKD.

This time, Fu Rongqi told them that Feng Yu was revisiting Hong Kong. The both of them wants to tag along as they do not want to miss out on any opportunities to earn money.

“Xiao Yu, let me introduce you to my other brothers. This is my 2nd brother, Fu Rongqu, he dealt with real estate most of the time. This my 3rd brother, Fu Rongbing. He runs supermarkets.”

“Xiao Yu is so young and capable. You are so much better than my useless son. I must ask him to learn from you in the future.” Fu Rongbing said.

“You flattered me. This time, both uncles are here is not just to meet me?”

“Hahaha. Of course. We had heard that Xiao Yu is an expert in investment. We intend to invest together with our eldest brother, and we hope we can get to learn something.”

Learn something? Apparently, the two of you are here just for the money. But this was also a good thing. If Feng Yu could be on the same side with the Fu family, then in future, it would be easier for Feng Yu to raise a bigger fund. In 1997, Feng Yu wanted to teach those American capitalists a lesson. Asia is not a place for them to take advantage of.

“Uncle Qi. You should have made a lot from the gold market this few months.”

“Hahaha, I did make some profits.” When Feng Yu mentioned this, Fu Rongqi brighten up. Although he was investing carefully, he also made almost 100 million USD.

Fu Rongqi still has a futures contract which will be settled tomorrow. It was a short futures contract, and he should be getting high returns. Fu Rongjing had also raised a sum of money and using leverage, he almost got back whatever the 400 million he had lost.

Fu Rongjing was instructed by Fu Rongqi to let the matter rest and not to mention about this incident again. The eldest brother was right. There were no enemies or friends when doing businesses. There were only profits.

Now, Feng Yu’s information had helped them made money and so, Feng Yu is a friend to them.

“These few days, I will also buy some London Gold contracts. If all of you are interested, you can tag along.”

Feng Yu could never earn all the money himself. Why not do the Fu family brothers a favor? In the future, it will be easier to ask the Fu family to join him.

Fu RongBing and Fu Rongqu were waiting for Feng Yu to say this. They were overjoyed and raised their gla.s.ses for a toast with Feng Yu.

The next day, Feng Yu went to the London Gold Exchange. He starts shorting the market in large amounts. The surrounding people were all shocked. Gold prices had fallen to 368 USD/ounce, and this person was still shorting gold?

Eh? Those two people behind that young man look familiar. They look like the two brothers of the Fu family. Was that young man investing for the Fu family?

But this was impossible. The Eldest brother of the Fu family has an investment company, and these two should be investing with their brother. Why would they hire that young man?

The crowd soon saw the two Fu family brothers start to short gold too.

That young man was not a broker hired by the Fu brothers. Instead, the Fu brothers were following that young man to short the gold.

Some of the people recognized He Zhaoji who was standing beside Feng Yu. This period of time, He Zhaoji was actively trading in the London gold market. They had heard that he was recruited by someone and he even poached some famous broker to work for that person.

The crowd started to guess that the young man was the person that had recruited He Zhaoji.

Some of the crowd started to copy Feng Yu to short the gold.

Feng Yu had invested almost 100 million USD, and he was conservative as he had used low leverage. Based on his calculation, he would settle the contract one week later, and he should make about 20 million USD.

Feng Yu still had a lot of money with him. He wanted to place a big bet. He wants to show the Fu Family that he is a genius!

On 16 January, the US and other countries will declare war on Iraq. At the same time, the Soviet Union will keep quiet about the actions of the US and other countries. They had no intentions to help Iraq.

Saddam Hussein will also announce that Iraq was not afraid of wars!

Wars were expensive, and Iraq had experienced it before. Because they were involved in two wars previously, Iraq was heavy in debt.

Iraqi soldiers were all veteran and had fought in wars before. After all, Iraq and Iran stopped fighting in 1988 and Iraq invaded Kuwait within a day. Saddam Hussein knew that his soldiers had the advantage.

Saddam Hussein believed that the US and other countries were only threatening him and if a war really broke out, the Soviet Union would not sit by the sidelines. If the US controlled the oil prices, it would not be good for the Soviet Union!

On 17th January, the Gulf war started!

Feng Yu saw the news on TV and he called Fu Rongqi to tell him that he will be investing in oil and the Fu family can decide if they want to follow him.

Of course, Fu Rongqi went with Feng Yu. Fu Rongqi did not believe that Feng Yu would short oil futures.

“Buy in at the current price and sell at 18 US/barrel. Use all the money in this account.”

Fu Rongqi, who was standing behind Feng Yu, was shocked. Feng Yu really dare to invest all his money in shorting oil futures, and he had used 20 times leverage. Yesterday, when the news that the US and other countries will be attacking Iraq, oil prices rose by a few dollars. Today, it rose by 1 USD again. Feng Yu still dare to short?

Also, Feng Yu had used all his money. He did not even have an exit strategy. Crazy!

Not only Fu Rongqi thinks that Feng Yu had gone crazy. Even his team of brokers and Feng Yu’s team of brokers believed that Feng Yu was insane. Who would place such a big bet with such high risk?

The other 3 brothers of the Fu family also heard about this news, but they did not dare to follow Feng Yu. Their brother, who was an expert in investment, even did not believe this information, how can they believe it.

Feng Yu confidently told the Fu family: “I am betting that during this war, oil prices will be dropping every day. You will know whether if I am right or wrong this afternoon.”

That evening, Feng Yu left Hong Kong, and the light in the Fu family’s study room was lit the whole night……