Manhattan Reborn 1978

new York.

Lunch time~

Manhattan.

Near the intersection of Fourth Avenue and 39th Street, Kailiwei Steakhouse.

David, Sam Rogers, Odis Parker, Mag Ludwig, and Bernard Madoff sat at a table against the wall.

Bernard Madoff, holding cutlery in his hand, smiled at several people: "John Bogle, the founder of Vanguard, believes that fund companies that join Vanguard should allocate about one-fifth of their managed funds to invest. To internal fund companies.”

"In doing so, it will not only deepen the close ties within the Vanguard company's fund family, but also share their respective investment risks, increase the stability of investment returns, etc."

Madoff turned to look at David and said with a smile: "So, of the 2000 million yuan I brought over, [-] million yuan will be invested in Vanguard's internal fund company."

"At the same time, after I invest the money, I will receive a corresponding investment of 2000 million yuan from other fund companies."

"This is equivalent to using a tacit investment rule within Pioneer Company to increase the stability of investment returns and reduce risks."

"Oh~"

David put a small piece of cut steak into his mouth, mentally analyzed the unique corporate structure designed by John Bogle for Pioneer, and nodded.

"Typical funds are controlled by an external management company, which is held by individuals, partnerships or investors who purchase shares of the company."

"The profits created by Pioneer are shared by the shareholders of the fund, so the costs that fund holders need to pay are essentially reduced to a minimum."

"So, the most distinctive feature of Vanguard Fund Group is that it is not a corporate company, but a mutual cooperative enterprise, that is, a fund management enterprise jointly owned by all fund investors?"

"Yes!"

Madoff put down the tableware in his hand, leaned on the table and continued to introduce: "John Bogle graduated from Princeton University. The topic of his graduation thesis was mutual funds as an emerging industry."

"Bogle, who had no work experience at the time, made three suggestions: Mutual funds should clearly state their investment objectives; they should reduce sales commissions and management fees; and they should not promise performance above the market average."

"But after he entered Wellington Investment Company, he tried to change the investment style of the Wellington Fund in 71 and switched to a more aggressive active management strategy."

"But he failed in the end..."

"He was almost driven out of the asset management industry..."

“So he learned from the experience, returned to the conservative tradition, and began to advocate and promote index funds.”

"After John Bogle founded Vanguard, he created the Vanguard 75 Index Fund in '500."

"The Vanguard 500 Index Fund is the first open-end index fund approved for establishment."

“直到1976年8月末，才募集到1140万美元宣告正式成立，比预计的1.5亿美元和5000万的底线都差很多。”

"Index funds...!" David softly repeated this phrase that was once very familiar but now seems very unfamiliar.

A few days ago, in order to learn from Professor Armstrong Bartlet, he proposed a dollar index based on the market exchange rate fluctuations in the Chicago foreign exchange market to measure the strength and weakness of various currencies. .

The dollar index is very similar to the Dow Jones Industrial Average, which shows the overall state of U.S. stocks.

The US Dollar Index Fund, which he was very familiar with before his rebirth, is a passive investment fund that tracks currency indexes.

Its investment strategy is generally to build a portfolio containing multiple currency assets and obtain returns by continuously tracking and analyzing the exchange rate fluctuations of the rice dollar.

Therefore, compared with other types of funds, the rice dollar index fund has the advantages of relatively stable yield + low investment threshold + simple and convenient operation.

There are two other advantages of investing in rice dollar index funds in the Internet era that investors value: the real-time trading and high liquidity of rice dollar index funds!

but!

The dollar index fund also has some flaws, the most obvious of which is the risk of fluctuations in the international exchange rate market.

Since the investment subject of the rice dollar index fund is the rice dollar, its income is closely related to changes in the rice dollar exchange rate! "

The exchange rate changes in the foreign exchange market are also highly uncertain and volatile.

At the same time, the dollar index fund also has potential risks in interest rate risk, inflation risk and policy risk.

But well. .

The investment strategy of the dollar index fund is to track its corresponding currency index. When the index rises, the net value of the fund will also rise; vice versa.

Investors can track investments in currency indexes and earn returns by buying or selling index fund shares.

Therefore, the US Dollar Index Fund can be traded globally without considering issues such as national restrictions and trading hours, achieving liberalization of transactions!

Moreover, as the trading scale of the Miyuan Index Fund becomes larger and larger, its high liquidity advantage allows investors to buy and sell fund shares relatively freely and achieve asset conversion and value appreciation at any time.

David put down the tableware in his hand, "relived" these very important memories in his mind, and silently let out a sigh of relief.

As is his favorite way to think about things, any investment strategy has its very obvious pros, cons, and two sides.

. . .

After David thought about it for a moment, he told the four people all his thoughts about the rice dollar index and the rice dollar index fund.

Mag Ludwigs can only understand a general understanding of these financial expertise, but does not have a deep understanding of the value behind them.

Not so with Sam Rogers and Bernard Madoff~

The two Wall Streeters had a very strong interest in the concept of the dollar index proposed by David.

Especially Sam Rogers, who asked excitedly with eyes shining after listening to David's specific explanation.

"Have you mastered the relevant data of the rice dollar index and the underlying mathematical calculation formulas?"

"Yes~"

"Then when do you plan to publish it?"

"Forehead.."

David shrugged awkwardly: "My original idea was to put it directly into Monetary Finance, but I never thought of publishing it as a separate paper."

"Because a young guy like me with low education cannot get the corresponding recognition and respect even if he publishes papers in the public media."

"So, I plan to try to write a press release for the Wall Street Journal explaining the concept of the rice dollar index under the guidance of my mentor, Professor Bartlet, to see the response it arouses, and then..."

"This..." Sam Rogers shook his head and sighed speechlessly.

As a veteran who has been on Wall Street for many years, Bernard Madoff has much broader experience and vision than Sam Rogers~

He quickly discovered a very good business opportunity from David's detailed introduction.

"If the Mi Yuan Index is widely recognized by Wall Street, companies that issue Mi Yuan Index Funds can treat their own company's shares as an investment target and freely circulate and sell them on the non-public stock market!"

"Yeah~ That's right 1"

David nodded with satisfaction and added: "We might as well expand its ideas a little more!"

“For example, when a fund company is preparing to issue a rice dollar index fund product, it can also let a number of experienced traders in the foreign exchange futures market form their own teams to track and invest in the rice dollar index, and exchange the funds they raise. Sell ​​the shares to people with investment needs to achieve win-win cooperation!"

"Forehead.."

“Can the dollar index fund products launched by fund companies also sell shares?”

"Of course... no!"

David deliberately held back for a few seconds, shook his head and said with a smile: "The regulatory regulations of the U.S. Securities Regulatory Commission (SEC) will definitely not allow this kind of operation of superimposing investment leverage in disguise."

"but!"

"If we raise the upper limit of the amount of funds raised by these fund products, and then control the number of product shares that can be put into the market for non-public trading within a relatively small range."

“If the multiple dollar index fund products of fund companies are recognized as stock funds by the sec, they can sell shares of fund products from the market, doubling or several times the total amount of funds we can control. !”

"Hi~"

What David called this illegal "wild way to raise funds" made Bernard Madoff take a few deep breaths of air and his heart was pounding.

Sam Rogers was also feeling excited and confused at this time. .

He knows very little about the various routines used by fund companies to issue fund products~

But this does not prevent him from applying his basic knowledge of stock funds and substituting the rice dollar index fund into it. .

"boss!"

Sam widened his eyes and asked very seriously: "When do you want us to start...?"

"Hahaha~"

"You can't wait?"

"Ok!"

David happily picked up the tableware, shrugged and joked: "After lunch first, I will tell you about the plan in detail~"

"Okay!" Sam glanced down at his half-finished lunch, smiled and nodded.

Odis Parker, who had been silent just now, had already cleared the plate in front of him, wiped the corners of his mouth carefully with a napkin, and showed a "charming" smile~

This guy David is indeed a gold mine with "huge reserves"!

----

The Queen.

Kennedy International Airport.

A private plane flying from London landed steadily on the runway.

inside the cabin.

Zina Osevia looked at the "familiar" scenery outside from the window, and her heart that had been hanging all relaxed.

Before she left New York for Naples, Italy, she never imagined that she would encounter a series of "magical" accidents~

Including the days when she and Elena stayed with David Romano in Naples, it made her so nervous that she almost collapsed. .

If it weren't for Elena's company, Zina felt that she would definitely not be able to remain calm and calm in front of David Romano.

. . .

After more than 20 minutes.

Zina, Elena Mesa and Toby Olga walked out of the plane, got directly into the car that came to pick them up, and quickly left the airport.

on the way.

Elena looked at Ms. Dragonfly sitting in the driver's seat and asked curiously.

"Where are the beetles and the gardener?"

"They are all busy~" Ms. Dragonfly glanced at the three women sitting in the back row in the rearview mirror and replied with a smile.

"Oh.."

Elena took Toby's fleshy little hand beside her, looked at the scenery outside the window, and asked again.

"Lontro Brinkman, have you checked?"

Ms. Dragonfly raised her right foot slightly, glanced at Toby and Xina in the rearview mirror, and nodded slightly.

"Otis Parker asked hotel manager Winston to place a reward inside the hotel~"

"Anyone can get a very objective intelligence bounty based on any important intelligence information about Lontro Brinkman."

"So, the rooms in the hotel are almost empty now..."

"By doing this, isn't he afraid of arousing the other party's vigilance and retaliation?"

"For the answer to this question, you need to ask him yourself~"

"Hahaha~"

Elena fiddled with Toby's little hand, tilted her head and explained to Xina: "As far as I know, there are at least seven people who owe Odis Parker a life!"

"If one day, Otis Parker is judged to have died unnaturally, these people will follow his last wish to find the real culprit, kill all his/her relatives and lovers, and then let the real culprit continue to live in pain. In regret and despair~"

"..." Zina rolled her eyes speechlessly, clenched her fists, and couldn't help but complain.

"The way he thinks about problems is really unpredictable..."

"Hahaha~"

Elena laughed and shook her head, and said to Toby with a hint of frivolity in her eyes: "Are you going back with us?!"

"Uh...still can't do it." Toby very vigilantly rejected Elena's "temptation" and shook his head repeatedly.

"It's too hasty to leave New York this time, I have to go back..."

"What are you going back for? Cleaning up the room?"

"Hehe~"

Elena looked at Toby who was speechless, played with her fleshy little hands in a very interesting way, and whispered.

"I was in a hotel in Naples and came across an interesting magazine."

"It contains an introduction to specific experimental cases about the halo effect, which makes me feel like I have never paid serious attention to these."

"For example: Most of the people who shoot commercials are famous singers and movie stars, but it is rare to see those little-known people."

"Because the products launched by celebrities in commercials are more likely to be widely recognized by ordinary people."

"Another example: a writer suddenly becomes famous one day, and all the manuscripts that were at the bottom of the box will be published and all the works will be sold. This is the effect of the halo effect."

"However, the psychological research definition of the Halo Effect is: a general or partial subjective impression formed in interpersonal perception."

"It is also very obviously harmful~"

"For example: sometimes the individual characteristics of things we grasp do not reflect the essence of the thing, but we are still used to infer the individual to the general, and to infer the whole from the part, and it is bound to be far-fetched and mistaken to infer other characteristics."

"It is a one-sided mistake to randomly grab a certain good or bad characteristic and conclude that this person is either perfect or useless."

"Love at first sight in love is because a certain aspect of the object matches your own aesthetics. You often choose to turn a blind eye to the incompatible factors in thoughts, sentiments, personalities, etc., and feel that everything about the other person is satisfactory."

"This is one of the dangers of the halo effect. It's too general!"

“Under the influence of the halo effect, people often feel that they do not know a person deeply, that is, they are still in the stage of feeling and perception, so they are easily affected by the superficiality, locality and perception of feeling and perception. Selective influence, so that the understanding of someone only focuses on some external characteristics."

“This is the second harmfulness of the halo effect, it’s just superficial!”

"Also, people's overall attitude towards a person will also have an impact on things related to that person's specific characteristics."

"For example: If you like someone very much, you will have emotions such as approval and understanding from the bottom of your heart for any decision or choice he/she makes."

"Even if he/she doesn't consider you at all, you won't immediately and completely change your love for him/her."

"This is the third harm of the halo effect, cognitive dispersion!"

Elena turned her head to look at the slightly dirty street scene outside the car, gently drew circles on Toby's palm with her fingertips, and whispered to herself.

"If something is good, it will be affirmed, and if it is bad, it will be denied. This is an absolute tendency dominated by subjective bias."

"If you link some personality or appearance characteristics that are not intrinsically related, and assert that one characteristic must lead to another, it is very easy for people to fall into the misunderstanding of denying their own subjective judgments."

"So~"

“Beauty on the outside does not mean kindness at heart.”

"Appearance ugliness does not mean that you have a dark or twisted personality."

"Knowing and trusting someone superficially, based on generalizations..."

"You just end up feeling extremely frustrated and hopeless."

"..."

The other three people in the car, hearing Elena's "confession"-like words, all remained silent in a tacit understanding.

Zina leaned her head against the car window, looking at the receding street scene outside. Suddenly, for some reason, David's smiling face flashed before her eyes, and she couldn't help but laugh. .

Could this be it too. .The so-called halo effect?