We are all reborn, who wants to be the richest man?

Chapter 486 The Stock Market Crash is Coming

Beautiful country, New York.

"Hey, sir, can I bother you for a moment? Would you like to learn about investing in stocks to increase your assets?"

"I'm sorry, I already have an account with Salomon Brothers and have bought a lot of stocks."

"It's okay, you can check out our latest stock portfolio. According to our predicted profit rate, it will definitely exceed your current investment and your imagination."

Perhaps the person was moved by the other party's words, or perhaps the other party mentioned more profits, and the person being sold stopped.

There are many cases like theirs. The streets are full of stock recommenders who are trying their best to promote their company's stocks.

In 1987, the United States ushered in a period of unprecedented economic prosperity. Throughout the first half of the year, several New York stock market indexes hit new highs, and investors' confidence in the stock business increased greatly, to the point of being a bit fanatical.

As the country with the most powerful economy in the world, the United States has never lacked people who want to pursue wealth.

In the current good economic environment, many people invest their money in the stock market.

All investors believe that even if the U.S. stock market fluctuates to a certain extent, their losses can be quickly compensated by other investments.

These people have no idea that a crisis is coming.

In pre-market trading before the market opened, the Hang Seng Index of the New York Stock Exchange and some corporate stocks began to fall, with some declines exceeding 2%.

But this did not cause panic among investors, as they felt it was a normal adjustment.

When the market opened at 3: in the morning, an interesting scene appeared. The decline of some stocks in pre-market trading not only failed to dampen investors' enthusiasm, but stocks such as M, IBM, Boeing, and Honor Games all saw a substantial increase.

"These are stocks that are sure to make money, so you will make money if you buy them."

Envy and jealousy, just like what this person who just bought 3M stocks said, no one thinks there is anything wrong with the stocks of these big companies, you can just buy them and wait for them to appreciate.

However, there is a difference between imagination and reality after all, and soon those who are flocking to the wealth myth of Wall Street will no longer be able to laugh.

After ten o'clock, the stock market showed phenomena that no investor had expected.

The first was the Hang Seng Index, which took a sharp turn downward as if it had been stimulated to jump off a building. It dropped 120 points in just one hour, and the trend did not slow down at all.

"What's going on? Is there a banker crashing the market and shorting?"

"Will it be a pullback?" Some investors expressed different opinions.

"Callback? Have you ever seen a callback like this, beginner?"

The decline of the Hang Seng Index caused quite a stir among investors, but even with such a clear signal, it did not cause panic among the vast majority of investors.

However, it was different when it reached noon. The entire market turned green and everyone realized belatedly that something was wrong.

All of a sudden, countless investors began to flock to the stock exchanges, demanding to redeem their stocks and stop losses immediately.

Because all stocks and futures are constantly falling, if investors are a step late in selling their stocks, the price they pay will become higher and higher.

As panic spread, all major stock trading halls were surrounded by crowds. In order to sell their stocks quickly, many people began to climb up the trading counters and tried to operate the trading systems on their computers themselves.

However, because there are so many investors who need to trade, stock traders have to set a maximum trading volume on their computers.

This operation once again triggered conflicts between investors and stock exchanges, and the looting and smashing began.

Some radical investors, seeing that the stocks they held were becoming less and less valuable, began to cause damage to the entire stock exchange, causing the scene to become extremely chaotic.

As the world's financial center, this situation on the New York Stock Exchange soon spread to all capitalist countries.

On October 420.81, the Hang Seng Index in Hong Kong Island fell 6.12 points, a drop of more than %.

The Nikkei 398.72 in Tokyo fell 2.35 points, a drop of more than %.

This is not considered bad. The Temasek Straits Times Index fell 12.15%, the Financial Times Index fell a record 10.1%, and the Credit Suisse Index fell 10.78%, all of which fell by more than %.

The worst hit was the United States, where the Nasdaq index fell by more than 22.6%, while the Dow Jones index fell a record % on the same day.

The stock market crash is coming, this is the consensus of everyone now.

Waste paper is flying everywhere in New York, and countless elites who were millionaires yesterday are now sleeping on the streets.

As the price fell too quickly, countless futures contract investors were squeezed out of their positions and were unable to close their shares, which also meant that their accounts were still suffering from continuous losses.

“Black Monday” “The global financial center is shifting.”

That night, these two topics became hot topics across the United States and even the world.

Black Monday refers to the severity of today's stock market, while George Soros, the founder of the Quantum Fund, which suffered heavy losses, said that the global financial center is shifting.

Compared with the U.S. stock market, the Nikkei index has obviously fallen less in this stock market crash and can withstand the test more. Coupled with the unprecedented prosperity of the island country's stock market in the past two years, the global economic center is shifting from the United States to the island country.

"It seems that our financial tycoon has already started to lay bait to make up for his huge losses this time."

In this stock market crash, Soros lost about US$700 million, making him one of the biggest victims in the market.

"So you plan to help him? I just don't know whether this financial tycoon will appreciate your favor when the time comes."

Right after Soros made these remarks, media outlets affiliated with the Far East Group all made Soros’ remarks their front-page headlines.

In Asia, the Luo family is the undisputed overlord in terms of its status in the media industry.

Once these remarks are reported, they will definitely boost the arrogance and national self-esteem of the island's people, and will definitely make the island's financial bubble even bigger.

"Robert, if I remember correctly, the price-earnings ratio of the island country's stocks had reached 48.5 times before the stock market crash."

"Yes, it's crazy," Robert sighed, his eyes filled with excitement.

“There was a correction in September, and everyone thought the market was going to collapse, but it unexpectedly rebounded strongly.

This time is the same. The United States, with a price-to-earnings ratio of 21.8 times, and Hong Kong stocks, with a price-to-earnings ratio of 17.9 times, have both experienced huge declines. However, the island country, with a price-to-earnings ratio more than twice that of these places, has indeed suffered the smallest decline.

This can no longer be described as a frenzy, it is more like a kind of fascination, all the islanders can't help but invest their money in the stock market."

At this time, Soros actually gave the people of the island nation some fuel, which was really a "well-intentioned" move.

The matter of Soros and the island country's stock market is just a casual chat. Now Luo Nianzhong is more concerned about the Hong Kong stock market.

Thanks to Luo Nianzhong's connections, the Hong Kong stock market is now much stronger than it has been in history.

Historically, the Hang Seng Index was at 3782 points before Black Monday, and now it is as high as 6875 points.

The industry is also different. Originally, the real estate industry was the absolute dominant force in the stock market, but what about now?

Although the real estate industry is still a force that cannot be ignored in Hong Kong stocks, the top ballast stocks are all industrial and technology stocks.

What’s interesting is that whether in history or now, the Hang Seng Index fell by 420.81 points on the first day, but the size of the market was different, so the proportion of the decline was also different.

"I'm going to the Hong Kong government later. You two can come with me."

In the afternoon, the Hong Kong government called Luo Nianzhong and invited him to discuss the stock market crash. In addition to him, the Chairman of the Hong Kong Stock Exchange, Li Fook-shun, and others were also present.

Luo Nianzhong plans to bring Robert and Du Huilian along as they are both professionals in the financial field and can give him some advice on some things.

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