Andy Krieger’s BIG Trade Event – The single biggest moneymaking opportunity?
For decades, everyone has wanted to know “What’s Andy Krieger thinking?” And, on February 20th, 2020, he’s stepping back into the limelight for the first time in his first live interview ever.
Why? Andy says another Big Trade is coming. He believes this is the single biggest moneymaking opportunity he’s seen since he “broke the Kiwi”.
Here’s what’s happening…
He is seeing an unprecedented confluence of compression across multiple currencies. They are ALL pointing to the same big event in mid 2020.
A BIG Big Trade you can make 30X from. The best part? He’s looking for a small group of apprentices to trade it with him.
Who is Andy Krieger?
Andy Krieger – a legendary moneymaker has come out of seclusion and he’s now working with Legacy Research.
We have never seen someone like this individual in our space – ever.
This guy has made trades so big, he has actually almost shut down the central banks of certain countries.
He’s the only person we know who has made a trade that’s generated $300 million in profit.
Andy’s been called one of “the most aggressive traders in history,” despite his extreme aversion to risk.
Krieger became famous for “breaking the Kiwi” in 1987, making $300 million in profits in a single day for Bankers Trust. Every foreign exchange professional has studied this trade… and it’s taught in every MBA program.
That’s not even his best… or most profitable trade. That’s only the one he’s famous for because news of this big trade spread like wildfire around the globe.
Andy even briefly worked for George Soros… and many believe George used Andy’s Kiwi trade as a template for “breaking the Bank of England”.
But then Andy mysteriously stepped out the limelight.
Since then, he’s traded multi-billion-dollar positions completely anonymously in the currency and commodities markets.
Over the past 35 years he claims he’s only had two down years. The probability of that happening by chance alone is 1 in 57 million.
In fact, whenever there’s a big trade in the currency or commodity markets… some people still wonder if Andy Krieger is behind it. His legend is so mysterious, he’s even on the most authoritative list of people who could be Satoshi Nakomoto, the inventor of Bitcoin.
How did trading genius Andy Krieger make his name?
Krieger graduated from the Wharton School of Business and majored in Sanskrit and Philosophy.
His trading career truly began when he joined Bankers Trust in 1986 after previously working for the Saloman Brothers.
He quickly gained a reputation amongst those familiar with big market trading as one of the most aggressive traders working at the time.
His ruthless trading strategy awarded him big results on his risky investments and the Bankers Trust were at awe with him.
With the full support of the Bankers Trust board behind him, his trading limit was vastly increased from $50m (the normal limit for most traders at the time) to $700m. That’s more than the GDP of some small nations.
In 1987, aged just 32, Krieger was about to make the biggest deal of his life.
What was Black Monday?
Black Monday or as it is also known as The Crash of 1987, took place on Monday, 19th October 1987.
On that day, available stocks suddenly far exceeded the demand for stock and investors. This led prices to fall and cause a panic.
How did it happen?
The exact causes of Black Monday are debatable and controversial.
Many believe it was a mixture of events. 32 years on, there is still no consensus on what actually caused the event to happen.
Some attribute it to the rise of computerised orders (also known as programme trading).
A new concept at the time, computerised orders sped up the selling process to a point that brokers and the New York Stock Exchange (NYSE) could not keep up.
During Black Monday, sell orders overwhelmed the automated system used by the NYSE and traders, lost in the chaos, gave up trying to put through trades.
This only worsened the situation as no one had accurate information on what was actually happening.
Others believe market psychology was the main culprit, saying that the dramatic dip in price started a relentless selling frenzy. But this doesn’t necessarily explain how it actually started.
Another factor was portfolio insurance. Designed to protect brokers from loses, it is believed that it actually ended up increasing their risky behaviour.
On top of that, there is a suspicion among some that insider trading may have played a role too. After the crash, the market shot back up dramatically.
The US economy before the crash
Before the 1987 crash, the US economy had begun to slow down following a period of recovery after the recession of the 1980s in Europe and the US.
The Friday before Black Monday was a red flag that something big was about to happen. The DJIA (Dow Jones Industrial Average) lost approximately 100 points by the time it closed at 4 pm in New York.
While it was an incredibly busy day for many, traders didn’t instantly see what might be coming.
On Monday 19th, the crash began in Hong Kong and spread to Europe and then to the US.
How did it affect traders?
The stock market was dropping so fast traders had no idea how low it could possibly go, they couldn’t see the bottom of this downward slide.
They were so busy they weren’t even sure if they could fulfil all of their orders, some even stopped trading completely.
You also have to remember that at the time, completing an order was a lot more complicated, time-consuming and involved more people, which certainly didn’t help the process.
By the end of Black Monday, the New York stock exchange had dropped 508.32 points. By today’s standards, this may not seem like much, but at the time it was ungodly.
Some traders lost everything and left the market broken and in tears.
On average, stocks dropped 40% across the world and created the largest one-day percentage decline of the DJIA in history, losing 22% in value, roughly equal to $500 billion.
Economists believed that the aftermath of this economic explosion would be almost identical to the years following the market crash of 1929, which resulted in The Great Depression.
Thankfully, that wasn’t the case and the market went on to correct itself.
How did Andy Krieger profit from Black Monday?
Krieger, as did other clever traders, saw a huge opportunity when all other traders saw oblivion.
As traders and investors saw the US dollar plummeting, they looked for a safe place to store their funds until the crisis was over.
They rushed to invest their money in foreign currencies that they believed were surviving the sudden drop in value better.
Foreign exchange markets would suddenly become the hot commodity if they could survive against the US currency.
Krieger realised that other, smaller currencies would suddenly become immensely overvalued because of this.
There was no way that these small countries with much smaller economies than the US could sustain such outrageous prices.
He believed that the New Zealand dollar (the Kiwi) was particularly overvalued and vulnerable to collapse.
So he used his vast purchasing power within the Bankers Trust to bring a huge amount of money to bear on the currency.
Many have suggested that he was dealing with more New Zealand dollars than the country actually had in circulation at the time.
With a leverage of 1:400 and adopting the new techniques of options, this was a venture never before seen in the trading world.
Sure enough, the Kiwi went down 5% after a few hours against the US dollar, and some claimed had fluctuations of up 10% during the day.
Krieger completed his trade with an estimated $220 million to $300 million made for Bankers Trust. Some have even suggested that the deal may have been as large as $700 million or even $1 billion.
Other traders soon followed Krieger’s trade, also realising how overvalued the Kiwi was, which only worsened the situation for New Zealand’s economy.
This incident caused major controversy in the New Zealand Central Bank, whichlater contacted Bankers Trust and demanded that Krieger be removed from trading their currency.
Krieger arrogantly argued that New Zealand was too small a country to cope with the amount of trade Bankers Trust was able to perform with their currency.
This prompted another wave of dissatisfaction from the nation he’d invested in.
If that wasn’t bad enough, New Zealand went on to become one of the worst-hit countries during the crash. Their stocks fell up to 60% at their worst and their economy took many years to recover in comparison to the US and Europe.
Interesting fact: New Zealanders refer to Black Monday as Black Tuesday, due to the time difference.
In the end, very little of the profit was given to Krieger after this gargantuan sale – around 1% of the money (likely, $3 million) was bestowed onto the man who had made the deal a reality.
Krieger resigned from his position at Bankers Trust shortly after this feat, reportedly disgusted by the small percentage he earned from this huge deal. Most likely looking for a new challenge and an environment to learn.
Andy Krieger’s BIG Trade Event – Final Thoughts
- Started picking stocks at the age of four
- Played professional Tennis in Europe
- Speaks multiple languages including English, Sanskrit, Bengali, Arabic, Hebrew
- Has traveled to over 50 countries
- Trades over 170 currencies and commodities
- BA in Philosophy at U Penn
- Wharton MBA
- Summer internship at J.P. Morgan
- Traded at the Chicago Board Options Exchange
- Philadelphia Stock Exchange Options Trader
- Salomon Brothers Foreign Exchange Desk
- Bankers Trust: Most traders were given a maximum of $50 million to trade. Andy worked with a $700 million account. Made $300 million profits in one trade. – The year before Andy was hired at Bankers Trust, they made $57M in profit, the year he was there they made $512M in profit and they made $153M the year after he left.
- Inventor of Bitcoin? He’s on the authoritative list of people who could be Satoshi Nakomoto.
- George Soros’ Quantum Fund: Ran the Options Desk
- “Goes in to Hiding” and makes Billions
Stay tuned for more information!