YM778.TV Chapter 1191 - Stock Markets crash, Gold rises
Feng Yu is also human and felt terrible to see the tragic event in front of him. Why can’t people live in peace without killing each other?
The US reacted immediately, but economic losses cannot be prevented.
After this incident, the US investors quickly dump their stocks in a panic. The Dow Jones, Nasdaq, and S&P index, dived.
Many people felt the US economy had suffered a major blow, and it’s better to cash out their stocks, as it is more assuring to hold cash instead of shares.
No listed companies can go against the market. All shares, especially the bigger companies, plunged.
The blue-chip shares started to tumble again because everyone felt these bigger companies will receive the biggest impact.
This is true. Many of these companies are located in the World Trade Center. This disaster had destroyed most of these companies’ data and stopped their operations.
The Nasdaq index fell by more than 5%, and it continues falling the next day.
Although the US Government had taken measures and pumped in a large number of funds into the market to stabilize it, it was not effective. Everyone is dumping their shares, and the US government cannot stop them.
The stock markets continue to fall in the following week, and the Nasdaq index had fallen by more than 16%. It fell faster than when Enron and WorldCom account fraud was exposed and during the Dotcom bubble.
The Dow Jones index fell by more than 14%, and the S&P index fell by more than 11%.
This is not the end. The US market crash caused a global financial crisis, and the stock markets in London, Tokyo, Hong Kong, etc., also crash. But it was not as severe as the US markets.
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“Boss, why are you unhappy when the market crash? Although we are not using high leverage, we had multiplied our profits by several folds.” Drucken Miller asked.
“Drucken, have you ever wonder if Feng might know this disaster will happen?” Soros asked.
Drucken Miller is shocked. “Boss, how is this possible?! If Feng knows about this incident beforehand, he will not invest so little. From the information we received, he had shorted less than 10 billion USD and had also hedged against it. The leverage they used is not as high as us.”
Drucken Miller says that if Feng Yu knows this will happen, he will surely use high leverage to short the stock index. With Feng Yu’s wealth, he can easily invest 20 to 30 billion USD. This way, Feng Yu will make up to 100 billion USD!
Soros shook his head. “No. Even if I know this will happen, I might also not do this. Do you think the US Government will not look into this? Anyone who is involved in this incident will be in deep trouble. Of course, I am only guessing. Maybe it is really coincident.”
“Boss, the US government is trying to stabilize the stock market. When should we settle the contracts?”
“Settle them before the end of next week.”
“Boss, the stock market will definitely not recover before next week, and it should continue to fall.” Drucken Miller frowned and asked.
“We will withdraw our funds to invest in Gold!”
It suddenly dawns on Drucken Miller. During war times, Gold will become the real global currency, and gold prices will surely rise.
Although this incident is not war, gold prices will surely rise!
If the US entered into a war because of this incident, gold prices would surely rise more.
Also, they are Americans, after all, and they should not short the US markets at this time. It will hurt those capitalists’ benefits, and it will sour their relationships. Suppose they continue to short the markets for higher profits. In that case, they will be the common enemy of everyone, and even the US government will target them.
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He Zhaoji looks at the numbers on his PC monitor blankly. He doesn’t understand why Feng Yu came to Hong Kong a few days ago and ask him to use all their remaining fund to buy long position gold contracts. Gold prices really started to rise now!
Since last year, Feng Yu asked him to short the US stock markets, and the stock markets suffered a heavy blow and crashed. Although Feng Yu has been saying he feels the US market will crash, He Zhaoji felt his Boss seems to know this will happen.
As the General Manager of Wind and Rain Consulting, He Zhaoji had to carry out Feng Yu’s orders. This made him feel upset as he was a famous stockbroker in Hong Kong formerly.
Although He Zhaoji is more famous now, he felt his fame is all because of Feng Yu. Luckily, Feng Yu is very satisfied with his performance, and he had made lots of money since working for him.
Overall, He Zhaoji did not regret joining Wind and Rain Consulting!
Wind and Rain Consulting had made a killing from the stock markets and gold market. Feng Yu’s foresight is amazingly accurate.
Regardless of what other people think, He Zhaoji and everyone at Wind and Rain Consulting think Feng Yu is the best financial expert in the world!
.......
Fu Rongqi sighed at home. Feng Yu had suggested that he buy some gold recently, but he felt gold prices will decline slightly, and there are no signs of any changes in the short term.
In the end, that tragic event struck, and gold prices shot up.
Although Fu Rongqi reacted quickly and bought Gold, he had missed out on lots of profits. Professor Liang, who is managing Fu Guangzheng’s trust company, also did not buy Gold initially. He only enters the market after the incident happened. Professor Liang and Fu Rongqi had the same thoughts about the market.
If they do not believe in Feng Yu, they might even suspect Feng Yu knows this tragic event beforehand or is even involved in it.
They felt Wind and Rain Consulting is making a mistake to short the US market all this while. But now, Wind and Rain Consulting had made the right call! Luckily, they had withdrawn their funds from the US markets and invested in Hong Kong. Although Hong Kong’s stock market is also affected, the impact is not that serious. It is still within its acceptable range.
When most investors suffered massive losses because of this incident, they kept their losses to the minimum and even made a small profit from Gold.