Chapter 36: A Genuine Billionaire

At 10:00 PM, the Federal Reserve announced an interest rate cut. Starting June 15th, interest rates on savings in U.S. banks were reduced from 3.35% to 3.05%, a decrease of 0.30%.

In the modern world, there are four major mainstream currencies: the U.S. dollar, the euro, the British pound, and the Japanese yen. The U.S. dollar accounts for 48.25% of the total—more than the other three combined—and is an essential foreign exchange reserve for every nation. From governments down to the common citizen, everyone with the means desires to stockpile U.S. dollars for a rainy day. This has given birth to the hegemony of the dollar; in layman's terms, the final right of interpretation for the U.S. dollar rests with the Federal Reserve. Whether cutting rates, raising rates, or printing more currency, any action by the Fed can shake the international financial markets.

The rate cut announced today was essentially aimed at stimulating market consumption, encouraging people not to keep all their money in banks, but to spend more and keep capital flowing. However, artificial intervention in the market naturally comes with both advantages and disadvantages. It inevitably leads to inflation. Over the past five years, the Fed has announced five rate cuts and two hikes; every rate cut has seen gold prices soar, and vice versa. This is because gold is the best tool for hedging against inflation and acts as a reservoir for all major capital. Before deciding which industry to invest in, buying gold is never a wrong move—it might not yield a fortune, but it will certainly not result in a loss.

Understanding the reason behind the surge in gold, Lu Liang leaned back, crossing his legs as he watched his account assets climb steadily. For every one-dollar rise in London gold per ounce, his account balance increased by $154,000. By 11:30 PM, his total profit had reached $7,739,700. In the past hour and a half, London gold had shown strong momentum, jumping 52 points to a current price of $1,514.55. It was now only two points away from the price predicted by the "voice."

Lu Liang decisively began to clear his position, selling off all 1,540 contracts he held and turning his floating profit into realized gains. His principal was $8.62 million, consisting of $5.62 million in margin and $3 million in operating capital, utilizing 100x leverage. After deducting the 3.5% leverage fee, his total account assets reached $16,254,700.

The market is ever-changing and afforded Lu Liang no time to celebrate becoming a multi-millionaire. The moment he sold, London gold rose another two points; market sentiment was extremely heated. Almost instinctively, Lu Liang switched from a long position to a short position. He reinvested $5 million to open a new position, again utilizing 100x leverage. With $500 million in buying power, he obtained 3,250 contracts through securities lending, with a total value of $492 million. He then aggressively sold off these 3,250 contracts at a price of 1,516.75. With all contracts sold, the dedicated funds in his account became $499.85 million, showing a current loss of $105,000. Short selling is similar to going long—both are about profiting from price differences. Going long is buying low and selling high, which is easy to understand. Short selling is relatively more complex: it involves borrowing assets to sell them at a high price, then buying them back later at a lower price.

Soon, Lu Liang had established his short position at a cost basis of $1,516.75. He had sold a total of 3,250 contracts, meaning every one-point movement resulted in a profit or loss of $325,000. His margin account held $11,254,700, and once losses exceeded 70%, a forced liquidation would be triggered. He could withstand a maximum rise of 24 points.

"This trend is about to hit its limit," Lu Liang muttered, eyes glued to the screen. During this period, whether investing in stocks or London gold, he had always been confident and calm because he knew that as long as the market depth was sufficient and his own influence was negligible, the outcome was predetermined. This time, however, shorting London gold required relying entirely on his own understanding of the market and his judgment of the trend, as the "voice" only provided the peak price and not how much it would correct afterward.

At this moment, Lu Liang’s focus was at an unprecedented level of intensity. He could have stayed in his comfort zone, but he wanted to test the results of his studies over the past few months. Time ticked by, and the price of London gold continued to rise slowly. When it hit $1,517.25, it seemed to encounter a bottleneck, hovering there for a long time. This price was also the predicted daily high. Lu Liang was completely absorbed, his heart nearly skipping a beat. He watched the numbers until they shifted to $1,517.88.

"It changed, just as I thought," Lu Liang whispered to himself. As a butterfly, he had once again altered the final outcome. In time, when his strength grew enough to influence the market, the foreknowledge he possessed might no longer exist.

Half an hour later, the price of London gold was still rising, but the momentum was faltering; it seemed the impact of the Fed's rate cut was nearing its end. At 1:00 AM, the market trend for London gold took a sharp turn, its upward momentum suddenly checked. It pulled back 14 points in an instant and continued to fall.

"This force doesn't look like a simple correction," Lu Liang frowned. Usually, price corrections in the market happen gradually; there is no such thing as a sudden dive. He searched news forums for the reason for the plunge and finally found the specific cause in a gold price volatility report released by Goldman Sachs.

"OPEC announced an increase in production for the next quarter?" Lu Liang suddenly understood why gold prices were diving. OPEC—the Organization of the Petroleum Exporting Countries—consists mostly of Middle Eastern tycoons. Their announcement to increase crude oil production signaled falling oil prices and economic prosperity, which naturally affected the price of gold. As the saying goes, "antiques in times of peace, gold in times of chaos"; during periods of economic prosperity, gold prices tend to fall significantly.

"It will dampen enthusiasm for the gold market, but it shouldn't be enough to offset the impact of the Fed's rate cut," Lu Liang mused, making a judgment. The influence of the Federal Reserve's rate cut took precedence over the increase in crude oil production. After all, it was a father-son relationship; no matter how loudly the son spoke, he could not drown out the father's authority. Although oil prices were controlled by OPEC, the United States stood behind the scenes. That was the very reason why the Middle East had known no peace for so many years.

"If I don't run now, it might be too late." Lu Liang no longer hesitated. Choosing to trust his own judgment, he reacted quickly and aggressively bought back the London gold contracts. Shortly after 1:00 AM, he bought back 3,250 contracts, paying a total of $485.1 million. Having sold at 1,516.17 and bought back at 1,500, he netted a profit of $1,675 per contract. In less than half an hour, Lu Liang’s profit from this short position reached $5,443,700. After deducting transaction fees, he had $5,338,700 left, bringing his total funds to $21,593,400.

"I’m laughing with pride~ laughing with pride~" Lu Liang hummed a cheerful tune, the corners of his mouth curling upward. It wasn't just because his assets had exceeded $20 million, making him a bona fide multi-millionaire; it was because his judgment had been correct, he had successfully cashed out at the peak, and he had managed to escape with his capital intact.

Just after he cleared his position, the market reacted rapidly, confirming that the impact of the Fed's rate cut was indeed greater than the increase in oil production. London gold instantly rose by 6 points, and countless short-selling speculators who reacted too slowly were liquidated. Lu Liang felt very pleased. Although he had used the "voice" to establish his position, he had relied on his own judgment to clear it. He was gradually becoming a qualified speculator.

"A moment of spring night is worth a thousand pieces of gold." Lu Liang put away his documents, walked out of the study, and arrived at Li Manli’s door. He stood there and listened; there was still movement inside. He tried the handle and found it unlocked, so he pushed the door open a crack and slipped silently into the room.

He saw Li Manli lying on the bed, scrolling through anime. She seemed to have just finished a shower, as her hair was still slightly damp. She was wearing pink leggings, her fair, beautiful legs swaying in the air, and her firm, rounded hips exposed a graceful curve. Lu Liang suddenly lunged like a tiger. Li Manli gasped, then cried out in pleasant surprise, "Brother Liang, are you done with your work?"

"Done for the moment." Through her loose neckline, Lu Liang caught a glimpse of spring—the red buds were particularly enticing.

"Wait a moment," Li Manli giggled, pushing Lu Liang away and rushing excitedly into the dressing room.

Ten minutes later, she returned wearing a purple cheongsam—a cosplay outfit of the Empress. "How is it?"

"Average," Lu Liang replied bluntly. Li Manli’s cleavage wasn't quite grand enough, and she wasn't tall enough to command the purple cheongsam; she looked a bit like a child playing dress-up.

"I'm angry now," Li Manli pouted, running back to the dressing room to change into a blue and white JK outfit, paired with transparent white silk stockings. She asked proudly, "How about now?"

"I've been looking at the computer too much lately, my eyes are a bit blurry. Come closer, let me take a good look." Lu Liang’s mouth curled into a smirk, and as Li Manli stepped closer, he responded with actual action.