1928: The rise of giant merchants

Just as Ye Luo expected.

Shortly after the market opened on the morning of September 5, the Dow Jones Index began to rebound, sprinting from 369.1 points to the 370-point mark. At the same time, the prices of many stocks were also recovering, and there was a trend of recovery.

If those big short sellers yesterday did not close their positions in time this morning, they would be greeted by a shock that easily exceeds 5%, and then be wiped out with all their money lost.

However, with Yelo's advance instructions, all the high-priced stocks they had shorted were closed as soon as the market opened. Roger Babson, who had increased his position by US$1 million last night, also quickly fled the U.S. stock market and became the main source of this slight shock. Two big winners.

Other short sellers were not so lucky. They became the prey of the bulls Fisher and Keynes. They could only watch as their positions were quickly liquidated less than an hour after the market opened, and millions of dollars became the possessions of the bulls.

Liu Xuenong, who had been waiting at the New York Stock Exchange early, had not slept all night last night. His head was filled with stock market data. Today, he came to the New York Stock Exchange with red eyes. His heart was finally relieved. Those high-priced stocks still rose.

Only the stock of Hartley Company, in which he invested a large amount, fell from US$57.6 to US$56.1 yesterday. It opened at US$55.8 today. One morning later, without riding on the rebound of the stock market, it had fallen to US$54.2!

"What's going on? It's obviously a high-quality stock that is about to enter the ranks of high-priced stocks. Why does the bull market continue to fall?" Liu Xuenong held the information in his hand and could not explain this incredible situation.

All his knowledge and skills come from self-study, and many of his things are imitated by Ye Luo, but Ye Luo cannot be imitated by others at all.

His palms began to sweat when he thought of the $19.19 million locked up in Hartree's company.

"Xue Nong, why are you standing here alone?"

Huixin's voice came from behind.

He turned around suddenly, subconsciously put the information behind his back, and replied with a guilty conscience: "Ah, sister Huixin, won't you have a rest today?"

"Rest?" Huixin was a little confused, holding the linen hat in her hand.

Naturally, Liu Xuenong's little moves could not escape her notice, but Ye Luo had already told her in advance that no matter what Liu Xuenong did, she should ignore it.

Looking at the plump figure of the young woman in front of him and her beautiful cheeks that could drip water, Liu Xuenong felt his breathing gradually become thicker.

For some reason, under high-intensity pressure, he felt more and more that Huixin's smiles touched his heartstrings.

Her lazy posture, watery eyes, and round and slender legs.

"No, it's nothing. I think it's more convenient to watch here." Liu Xuenong was incoherent.

Huixin said "Oh", twisted her slender waist, and waved to him: "Then I'll go back to the VIP room. Oh, by the way, your secretary said he has a phone call for you, please take the time to go check it out."

Liu Xuenong watched Huixin walk down the second floor, and the heat in his body slowly dissipated. He patted his cheeks, thinking of his newly recruited hot secretary, and hurriedly followed him downstairs to outside the New York Stock Exchange.

He rented an apartment nearby to work, and his secretary was stationed there.

When I arrived at the apartment, I wanted to vent my anger first, but I found the female secretary running anxiously: "Vice President! Many telegrams have been sent from the Republic of China, please take a look."

When he heard that it was from the Republic of China, Liu Xuenong's anger immediately dissipated. He quickly checked the telegram, and then felt a chill in his heart.

I don’t know where the information came from. They have learned about the recent stock market trends and have inquired about their own capital situation.

How can this be answered?

Tell them that all your money is tied up in Hartree stock?

The upset Liu Xuenong sat down on the sofa.

If you withdraw your capital at this time, you will lose millions of dollars. Maybe you can fill the hole later through operations.

But the stock market is picking up, and it's really hard to give up Hartree Company at this time.

"Just wait, wait until tomorrow. If it still falls tomorrow, I will let it go."

Ye Luo left the Franklin family's villa leisurely. After finishing the short-term short position, he asked the hundreds of stock managers to quickly go long, and he should still make a small profit.

At this time, he held about 45 million U.S. dollars in equity, most of which was scattered in the hands of various managers. About 5 million U.S. dollars was rolling in Huixin's hands, and adding all the equity capital of the small group, it was about 130 million U.S. dollars.

How much new profit this US$130 million can generate in September will determine how much profit he can make in the subsequent October war.

Before coming to the United States, Ye Luo's total assets were only 40 million oceans, equivalent to more than 8 million U.S. dollars. Thanks to the shareholders of the Republic of China and the magical U.S. stock market, 8 million turned into 45 million in two months.

That is to say, in the United States in 1929, it was only possible to make money so freely during a once-in-a-century financial crisis.

"The next opportunity will be the Japanese bubble economy in the 1990s. At that time, I might even be lying in a grave. Forget it, just seize this opportunity." Ye Luo smiled self-deprecatingly, sitting in the car Continue to think about subsequent investment plans.

That afternoon, the rebound in U.S. stocks was gratifying.

The Dow Jones Index returned to 370 points, and high-priced stocks began their unscientific journey to climb to high prices. However, the penny stocks that had been soaring before fell into a downturn one after another.

The main buyers of penny stocks are the people at the bottom, and the penny stocks are starting to fluctuate, which means that the people at the bottom have begun to lose money, and they have lost money to the point where they dare not continue to buy stocks. This means that those who rely on the popularity of US stocks have no actual benefits at all. Companies have run away one by one.

Of course, there are some people who really made a fortune from penny stocks and moved to the New York Stock Exchange.

No matter what, the decline of penny stocks reflects the real situation of U.S. stocks to a certain extent, but at this time, no one cares about what happens to stocks that only cost a few cents per share. Such stocks, in Amax, Dozens of new stocks appear every day, and several are inexplicably delisted every day.

The stock market frenzy is still burning.

Especially this wave of recovery is extremely exciting.

In Chicago, Samuel Insull, now at the peak of his career, was eyeing Insull's shares of Utility Investments, which had been given to him a few months ago for less than a dollar per share. The share price was $8, and today, it actually reached a sky-high price of $115 per share!

In Cleveland, those visionaries were betting all their money on the railroad wizard Van Swearingen brothers. The two men built up a mountain of holding companies layer upon layer. These companies have suddenly become the new favorites of the New York Stock Exchange!

In Detroit, some big bankers and car company managers succumbed to the general enthusiasm for financial markets and prepared to consolidate a bunch of Michigan banks into a giant conglomerate and then descend on the New York Stock Exchange as high-priced stocks!

On the Pacific Coast, Amadeo Giannini's Bank of America aimed to swallow up all the business in California; Charles Mitchell's salespeople from Citigroup in New York were selling claims on South American companies to small banks in rural communities. , sold Anaconda Copper Company stock to the president of the bank.

Prosperous optimism is everywhere.

Over the next two weeks, this prosperity became extremely abnormal.

The Dow Jones Index slowly fell back from over 370 points to around 350 points. This kind of drop is quite incredible.

Yet stocks are moving higher.

There are still plenty of stocks rising.

Even Hartley, which had been shaky before, stopped falling after falling to around $50.

Liu Xuenong felt that this level of loss was still acceptable.

On September 20, the storm finally came over the United States. (End of chapter)