Research On Profit Anchoring Based Investment Strategy With Combination Of Futures And Spot Product For TM Company

The ferrous metal industry is the foundation of our gross economy,with ferrous metal as one of the most important raw materials in China.The globalization and marketization of the domestic economy promoted by the development of Chinese economic reform,along with the current obstacles in the economic transformation,lead to great difficulties in the ferrous metal industry.With our domestic futures market gradually mature,especially under the condition that all the products in black ferrous metal industry chain are listed,one of the major problems for practitioners in the ferrous metal industry is how to combine futures with spot goods in order to sustain,even expand their scales of operation.This article,used Markowitz financial management theory,based on applications of traditional futures and spot products combinations and the current market and management situations of TM company,proposed a new model.Through the research of theories and application about the combination of futures and spot goods around the world and the analysis of black ferrous metal prices for the last decade,this paper finds the “anchoring” in the black ferrous metal industrial chain based on the theory of anchoring effect,and verifies the conclusion by economic theories and statistical tools.Besides,based on the market dealers’ exploration of the combination of futures and spot goods and recent “virtualconcrete chain” structure in the black ferrous metal industry,this paper suggests a new mode of the combination of futures and spot materials,and verifies its applicability with practical cases.This article also proposed an optimization strategy of TM company,and provided a solution for the combination of futures and spot products in the black metal product chain.This paper intends to make clear the inherent operating rule in the ferrous metal industry and provides the attendants in the ferrous metal industry with a practical mode of the combination of futures and spot goods,therefore helping them utilize futures as a tool to stabilize normal operation and look for potential stable earnings.Meanwhile,this paper also provides a new idea for ferrous metal-related companies to better apply the combination of futures and spot goods to their daily operation.