Golden Spoon Investment Portfolio - Chapter 62

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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62. It doesn’t seem like a trivial amount at all.

Newark Liberty International Airport.
Under a cloudless sky, with weather as clear and brilliant as could be, a pristine white Gulfstream IV business jet sat parked on one side of the expansive tarmac.
The spacious and comfortable interior of the business jet was elegantly appointed with soft leather sofas and solid wood furnishings.
Across from a round windbreak window offering a sweeping view of the distant runway and rows of passenger aircraft lined up beyond, I sat facing Landon Shore, engaged in conversation.

“After deducting all borrowing costs, fees, and taxes, we’ve confirmed final profits of 19.18 billion dollars.”

Landon Shore, impeccably dressed in a gray suit, handed over a thin folder of documents as he explained.
Leaning back comfortably against the plush seat, I accepted the folder and skimmed through the settlement statement inside, a satisfied smile crossing my face.

“The profit margin isn’t bad for what we anticipated.”

At my relatively composed response, Landon Shore shook his head.

“This isn’t just ‘not bad’—it’s an absolutely massive jackpot. I checked the total profit figure multiple times, wondering if I was seeing it correctly. How can you remain so composed about it? You’re truly remarkable.”

If it had been me, I would have been jumping around with joy.

“Perhaps this is what they mean by differences in character.”
“I’m surprised too.”
“I don’t think so.”

How could that lightly smiling face possibly be expressing surprise?
Landon Shore glanced sideways as if to say I shouldn’t joke, then spoke again.

“When we were leveraging heavily and moving over 74 billion dollars, I was anxious about whether something might go wrong. But seeing the profit figures, all that worry seems to vanish in an instant.”

It was leverage exceeding ten times over.
While this allowed us to maximize profits, had bond prices dropped even slightly, losses would have ballooned astronomically in an instant, potentially bankrupting the Eldorado Fund outright.
So there was no choice but to remain constantly vigilant and anxious.

‘Even knowing that low interest rates would continue through this year, I started each day by checking bond prices. There’s no need to mention what others must have been doing.’

Surely they must have been restless, checking bond market rates whenever they had a spare moment.

“I feel relieved to have closed out all my positions, but at the same time, I wonder if we’ll ever see such lucrative returns again.”

Landon Shore spoke with a bittersweet expression.
Unlike Landon Shore, I appeared composed, utterly devoid of regret.

“It was certainly extraordinarily profitable, but everything that has a beginning must have an end. There’s no need to lament over it.”

Landon Shore then glanced subtly around before lowering his voice to ask.

“Do you truly believe the Federal Reserve will raise the benchmark interest rate as you anticipate?”
“Of course.”

I picked up the whiskey glass sitting on the table, and the ice cubes inside clinked softly against the glass.

“The White House may dislike it, but the Federal Reserve fears inflation above all else, so they’ll certainly do it.”

Landon Shore’s expression grew heavy as he had been monitoring the Federal Reserve’s movements and bond market conditions to gauge the likelihood of a rate increase.

“We’ve stepped away clean, but there’s still considerable leverage tied up in bonds. If things unfold as you say, the impact will be severe.”
“After such an extravagant party, the hangover will be equally substantial.”
“Indeed, with hedge funds diving in en masse, the bond market has become bloated with bubbles.”

The Eldorado Fund had played no small role in inflating that bond bubble.
A rate increase would certainly cause considerable shock, but it wouldn’t necessarily collapse the entire bond market.

‘The Federal Reserve is betting on that very assumption, which is why they’re attempting this preemptive rate hike.’

Yet the world rarely unfolds as planned, and calamities tend to strike all at once.
Though not yet prominently featured, there were unforeseen mines scattered everywhere—concerns about yen strength from trade disputes between the United States and Japan, and unexpectedly strong inflationary pressures—all intricately entangled with the excessive leverage created by hedge funds, capable of triggering a catastrophic chain reaction that could devastate the entire bond market if a problem erupted in one sector.
All of these were excessively leveraged and intricately interconnected by Hedge Funds, so that when a problem occurred in one place, it could instantly trigger a chain reaction and cause a catastrophic disaster across the entire bond market.

The Federal Reserve’s rate hikes became the very trigger that set off this horrific death spiral.

Since he would learn the truth soon enough anyway, I saw no need to elaborate and simply moved on.
Since it was something Seokwon would find out soon anyway, he didn’t bother to point it out and simply let it go.

“Yes. We’re steadily increasing our commitments.”
“Yes. We are steadily increasing our commitments.”

Seokwon nodded slightly and set down his whiskey glass before speaking.

“Tell Andrew to establish a new long position in yen.”

Landon Shore’s expression turned puzzled at the unexpected instruction.

“You believe the yen will appreciate?”
“You must be aware that with the continuously widening trade deficit, the atmosphere between the United States and Japan has become ominous.”
“Of course. Haven’t the two countries been engaged in negotiations since April to address the trade imbalance?”

The U.S.-Japan trade negotiations had recently emerged as the hottest issue in American political and business circles.

“The biggest point of contention is the automobile import issue, and finding a compromise won’t be easy.”

Landon Shore nodded in agreement.

“Beyond simply urging increased imports of American automobiles and parts, they’re demanding specific import quotas and even requiring the Japanese government to guarantee implementation. That’s a difficult position to accept.”
“Exactly. But the White House also knows it’s an unreasonable demand, yet they can’t afford to compromise.”
“You’re referring to the United Auto Workers?”
“Yes.”

The United Auto Workers was the second-largest and most influential labor union in America, commanding hundreds of thousands of members.

“Detroit and the northern Rust Belt have suffered severe damage from the increase in Japanese automobile imports.”
“The economy there certainly isn’t doing well.”
“With the midterm elections coming next year, to hold the Rust Belt—traditionally a Democratic stronghold—and appease the United Auto Workers, they’ll have no choice but to take a hardline approach.”
“Indeed, with approval ratings already in the basement due to successive policy failures and the signing of the North American Free Trade Agreement ratification, they must be feeling the pressure.”

The North American Free Trade Agreement (NAFTA) was a free trade agreement binding the United States, Canada, and Mexico into a single economic bloc.
With NAFTA’s implementation, tariffs dropped significantly and trade became easier, laying the groundwork for substantial economic growth.
However, there were unintended consequences—American manufacturers naturally relocated factories to Mexico in search of cheaper labor, resulting in job losses and wage declines.

The Democratic Party’s core support base was the working class, so approval ratings had no reason to rise in such circumstances.

In fact, the opposition Republican Party was fiercely criticizing the White House for stealing jobs from American workers.

“To make up for their mistake, they’ll pressure the Japanese government hard, by any means necessary.”
“Surely you don’t mean they’ll deliberately engineer yen appreciation?”

Landon Shore’s eyes widened as he received Seokwon’s nod of agreement.

“If the yen appreciates, import prices rise, which naturally reduces the trade deficit and allows us to apply pressure on the Japanese government. There’s no reason not to use such a card, wouldn’t you say?”
“Now that you mention it, this does seem like a sufficiently viable scenario.”

Landon Shore, judging this a worthwhile bet, leaned forward and asked.

“How much of a position should we take?”

Seokwon, having already considered this, answered without hesitation.

“Since we need to invest in bonds as well, let’s keep it modest—just 8 billion dollars.”
“That doesn’t sound particularly modest to me.”

Landon Shore looked at him with a bewildered expression.

“Considering you were managing hundreds of billions of dollars in bonds not long ago, this isn’t really that much, is it?”
“Ha ha.”

Since his point wasn’t without merit, Landon Shore shook his head with a rueful chuckle.

“Honestly, being next to the boss like this, my heart keeps trembling. I won’t live out my natural lifespan at this rate.”
“Isn’t it thrilling and exhilarating?”

At Seokwon’s jest, Landon Shore placed a hand over his chest and shook his head.

“My life’s motto is to live thin and long. I want to live peacefully with my beautiful wife and see my great-grandchildren before I go.”
“Then life would be far too dull. You need your heart to race to truly feel alive.”
“If my heart races unnecessarily, I’ll have to go to the hospital. But is there anything else you’d like to instruct me on?”
“That’s all.”
“Thank goodness. If there were any more surprises here, my heart truly couldn’t take it.”

Landon Shore laughed and made light of the situation.

“The fund can’t operate without Landon Shore, so I can’t have you damaging your health. I should prepare some medicinal tonics for you next time you visit.”
“So you’re going to make me consume tonics while working me? You’re becoming quite the unscrupulous employer.”

At that, Seokwon deliberately drooped his eyes with an aggrieved expression.

“The fund’s performance has been excellent, so I was thinking of adding a special year-end bonus. But now I’m hearing I’m an exploitative employer, so I’ll have to reconsider.”
“No, please don’t say such things! You know I was joking.”

Seeing him quickly change his attitude, I burst into laughter.

“I was just teasing too.”
“You really are something, boss.”

Landon Shore raised both hands slightly in a gesture of surrender.

“Then I’ll take my leave now. Please travel safely to Korea.”
“If anything comes up, contact me anytime.”
“Understood.”

As Landon Shore rose from his seat, a sudden thought occurred to him, and he paused to speak.

“By the way, since we’ve made substantial profits, why don’t we purchase a private jet so you can travel comfortably?”
“It would certainly be convenient to have one.”

I considered the idea for a moment.

“There’s no immediate rush, so let’s finish this current bet first and think about it slowly.”
“Very well.”

Landon Shore bowed slightly in farewell and descended from the business jet.
The elegant Stewardess then approached as if she had been waiting and asked.

“May we take off now?”
“Go ahead.”

As I nodded, the Stewardess spoke with a smile.

“Understood. Please fasten your seatbelt.”

After confirming that I had fastened the seatbelt in my seat, the Stewardess walked toward the rear and closed the boarding door.
As I gazed out at the airport landscape beyond the circular window and took a sip of whiskey on the rocks, the jet engines mounted on both sides of the fuselage roared to life with a brief vibration.
Soon, the business jet carrying me began to move slowly, taxiing out of the main apron.
After waiting briefly under the control tower’s direction, the business jet accelerated down the long runway at maximum thrust, then lifted powerfully from the ground and soared high into the sky.
After climbing steadily upward for some time, the business jet reached cruising altitude and began to level off.
The Stewardess then returned to the passenger cabin and spoke to me.

“You may unfasten your seatbelt now. Is there anything else you need?”
“I’d like another glass of the same, please.”

I held up the whiskey glass I’d been drinking from slightly to show her.

“Of course.”

As the Stewardess left, I leaned back comfortably against the plush seat and let my eyes sweep across the elegantly appointed interior of the private jet.

“Should I actually buy one?”

Compared to the money I’d earned this time, purchasing a private jet could hardly be called an extravagance.
Feeling the scales in my mind tipping increasingly to one side, I slowly swallowed the remaining whiskey.

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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