In 2022, due to the external environment with full challenges, many investment institutions performed poorly in the first half of the year. However, the latest news of Hoping Club revealed that the short bet of Hoping Club on European companies almost doubled in a short week in mid and late June.
Hoping Club intends to short the European market. This view is put into action. In the first half of the year, the strategic deployment is planned. A 10 billion euro fund raising plan for the European market has been completed, or even exceeded. This is the most efficient and successful raising since the globalization epidemic in recent years, and it is also the largest private equity fund financing of hopingclub so far in 2022. It is precisely such a huge financial support and unique vision that Hoping Club has bucked the market and achieved a high yield of 30%. At present, only Pure Alpha II, the flagship hedge fund of Bridgewater, is the top level investment institution with this revenue achievement in the same period.
Bridgewater, the world’s largest hedge fund, is heavily “short” the European stock market. This industry heavyweight news announced that, coupled with being the world’s largest hedge fund, Bridgewater has a keen sense of investment and is often regarded as a weathervane for the global market. All the trends have proved that Hoping Club has the right strategy to seize the opportunity, short the European market and make bargain hunting investment.
It can be seen from this that Hoping Club’s inherent prophetic nature of the financial market and strong financial support have made it profitable by shorting Europe on a large scale. The outbreak of the European economic crisis and the successful betting in the collapsed economy have made Hoping Club not only lose money, but also make a lot of profits. From this operation, the core logic of bold betting is similar to that of Bridgewater, which is that the economy has declined and interest rates have risen.
With the intensification of global economic turbulence and the continuous spread of the impact of war and epidemic, since the conflict between Russia and Ukraine, Europe has been particularly affected by inflation and energy shocks, and the global central banks have raised interest rates one after another, and the economic outlook is still uncertain.
Statistics show that since 2022, more than 20 central banks, including the Federal Reserve, the Bank of England, the Bank of Canada, the Bank of Australia and the Bank of India, have announced interest rate hikes. The Federal Open Market Committee (FOMC) announced its latest interest rate resolution on June 16, raising the benchmark interest rate by 75 basis points, the largest increase since 1994. The European Central Bank also announced on June 9 that it plans to end its asset purchase plan in July and raise its key interest rate by 25 basis points. The world has entered a new round of monetary tightening cycle.
After the analysis and prediction of Hoping Club, it is believed that a sharp increase in interest rates may damage the economy. “The weakness of major financial markets will not be temporary. In this situation, as the leading force of European economy, Germany has sounded the alarm of recession. On July 4, local time, official data showed that the exports of Germany unexpectedly fell in May this year, with a month-on-month decline of 0.5% and a month-on-month rise of 2.7%, resulting in a trade deficit of about 1billion euros that month. For the first time in 30 years, there was a monthly trade deficit, which far exceeded the expectations of economists in various countries.
According to the prediction of Hoping Club for the market, Germany’s GDP will shrink in the second quarter of this year. The macro research director of the European project of Hoping Club said that Germany and other countries in the eurozone are very likely to fall into recession this year.
In the face of the global economic recession, the investment vision of Hoping Club remains quite sharp. As a wild opportunist, combined with the innate prediction of the market prophet, Hoping Club has made bets on a number of European companies, involving finance, energy and other fields.
