The rebirth of the Hong Kong Island chaebol, starting with a short-selling Eagle Sauce

After the Dongzhou financial crisis broke out in 1997, people abandoned the Dongzhou miracle, and countless money poured into the beautiful country.

Technology companies with unlimited prospects have naturally attracted a large amount of domestic and foreign funds.

From 90 to June 98, the Nasdaq index quadrupled, and U.S. stocks soared.

But Wang Lei knew that the real craziness was in the second half of 98, when the growth of the stock market was completely out of control.

The annual growth rate of the Nasdaq is as high as 125%, and the growth of some technology and Internet stocks is even as high as 200%!

The corporate valuation also increased from 26.5 times to 69.4 times in a short period of time.

In this irrational investment environment, there have always been two heretics: Proton Fund and Tiger Fund!

Since their inception, they have always considered themselves a hedge fund.

What hedging is, in their understanding, is to short-sell junk stocks with no valuation and to buy high-quality stocks with investment value.

Tiger Management and Proton Fund used this set of theories to quickly rise to prominence. In just a few decades, they became big short sellers capable of controlling tens of billions of funds.

But this set of golden theories failed when it comes to technology and Internet stocks.

In their perception, and in previous models, the science and technology network is full of bubbles, and its market value is hundreds of times its earnings. You say it has no bubbles and can it still rise?

Therefore, when investors and capital were enjoying the carnival, they began to short-sell Internet stocks without hesitation.

Don't think they are unintelligent, stupid or greedy.

Without God's perspective, no one would know that a valuation of 70 times is not the end of the bubble, but just the beginning.

No one knows when the bubble will burst, and short sellers can only wait patiently.

Both Tiger Fund and Proton Fund, which have persisted for so long, have suffered losses at varying levels.

Tiger Fund in particular, its investors are gradually losing patience.

Investors withdrew their funds from Tiger Fund in waves, and the company's management scale began to shrink rapidly from US$300 billion.

The Proton Fund is not having an easy time either. Its head admitted in an interview that last week alone they lost $10 billion on short-selling technology stocks.

This gave the leader the idea of ​​​​devoting himself to the higher side.

Just when the two big short sellers were in pain, suffering, and doubting their lives, Wang Lei stood up!

Wang Lei accepted an exclusive interview with Paramount News.

"Mr. Wang Lei, netizens and the public are now attacking you, saying that you are a dangerous and selfish investor. Do you have anything to say?"

Wang Lei, who was sitting on the sofa, showed a sarcastic smile:,

"I always believe that the truth is in the hands of a few. I am a rational investor and never believe in miracles. No private company can violate a law. It exists to make money, not to spend money.

If any fund manager tells me that a certain stock can violate this law, sorry, I will give him two sinuses and tell him: Liar, get out of here! "

The invited Stanford students below burst into laughter.

The reporter also laughed. Although he thought Wang Lei was quibbling, he was his boss's boss's boss. He could only laugh along with whatever the other party said.

"Then someone attacks you and says that you are badmouthing the entire technology and Internet industry. I think this is a slander against you..."

The host who originally wanted to say a few nice words to Wang Lei was interrupted by Wang Lei:

"No, I think they are right. I am looking down on the Internet. The valuation is 70 times. Even I feel scared when I look at it. I think the tragedy of Sakura Country will happen again sooner or later!"

Investors have no memory, or the financial market has no memory. Tragedies obviously happen again and again in the stock market, but people make the same mistakes again and again every few years.

Not only do the public have no memory, but even institutions are playing dumb, thinking they can get ashore before the crisis breaks out.

Only when the tide goes out do you know who is swimming naked.

Not only the Stanford students were in an uproar, but the audience watching the live broadcast began to get excited.

It's just that they are scolding Wang Lei for being shameless and telling lies.

Some people think Wang Lei is trying to manipulate the stock market again.

Some stock market analysts said that this was all Wang Lei's little trick. What he said on the TV program was just to make the public shake. Once someone sells without determination, this guy will definitely take over.

What made Wang Lei speechless was that his words did not serve as any warning. Instead, people went even more crazy to raise the stock price.

Technology Internet stocks are entering an irrational investment stage in the market.

Everyone is crazy, all theories and normal market laws no longer apply, and investors who still "stick to the rules" are called

Old economy investors.

And Wang Lei is also called the guardian of the old economy.

Just when he thought his words had no effect at all.

Tiger Management and Proton Fund have become active.

The Proton Fund, which had originally planned to invest in the long arms, saw a glimmer of light after hearing Wang Lei's speech.

Even Wang Lei has seen the bubble in the Internet industry. Their vision cannot be shorter than Wang Lei's.

"Sooner or later, the bubble will be burst, and the market will one day correct its irrationality."

This sentence became their hope to persevere.

Wang Lei was also particularly surprised when he heard the news from Robert.

"I didn't say the Internet bubble would explode in the short term. If they went bankrupt, they would come to me."

Robert couldn't help but asked curiously:

"So boss, when do you think the Internet bubble will explode?"

"Robert, have you ever heard of Y[-]K?"

"Of course I have heard of it. The millennium bug is also called the Y2K crisis..."

Computer programs often use the last two digits to represent the year.

For example, 98 is used to represent 1998, and 99 is used to represent 1999.

But programmers realized that if 00 is used to represent 2000.

It will cause some program errors and equipment to stop.

This will have a catastrophic impact on key sectors such as energy, finance and government.

Some fraudsters described the millennium bug as a plague virus and specialized in defrauding old ladies from their pensions.

Robert suddenly understood:

"You mean people's unknown fear of Y[-]K spread to tech stocks and never caused a stock market crash?"

"That's what I mean. Fear is the last straw that breaks the bubble. What I said on the TV station was actually meant for that guy Greenspan to listen to!"

Robert suddenly realized that in his impression, Wang Lei was an egoist and would not be a whistleblower at all.

It turned out that these words were meant to intimidate Greenspan!