Chapter 126 The Bubble Bursts

Friday, 11th May 2000

"It's described as nothing short of breath-taking. A point drop saw or anticipated for the tech industry in the US market. This closing bell might have been an alarm to push the market toward selling.

It is less impact than the crash of '87, but it left traders and investors shell-shocked.

As we interviewed some people from the financial world, all they could say was that 'there goes another one. Too many in a row.'

The plunge was sparked by a jump in US inflation and an increase in interest rates to control the onslaught of crazy speculations. In one day, the Dow Jones went down 606 points from its opening of 10,307, a drop of five and a half percent, while the Nasdaq is in free fall with a loss of approximately ten percent.

They lost a quarter of their value in one week. We move over to wall street to hear the story directly from the well-known hedge fund manager, David Greyson." The screen cut back to the reporter present on the scene.

She held the microphone over to David as he began explaining the situation.

" Once this body started its motion, it was very, very difficult to put the brakes on. And by one's clock, everyone threw in the towel to wait the next trading day to see what would transpire. We will wait till Monday to get back at it again."

" Will it spread to other parts of the world? What are your thoughts about that?" The reporter asked.

" With this game could be a rough one. As I said, we will wait until Monday morning for our market to open again. But the expectation is that those countries that are heavily connected to the USA, they may see some ripple effects. They could be hit too."

Back to the news station.

" The saving grace for these foreign markets is that they are not as overvalued as the US market. Some of the Dot-com companies have already lost half of their value.

Tech giants like Microsoft are not abstaining from that scenario too. Bill Gates, for one, has already seen a decline of two billion dollars this week alone. The panic is spreading, and we don't know the future where it will lead us."

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It was like a wildfire sweeping the financial market. The owners of these new IT companies were losing money left and right. They became millionaires overnight when their companies went public, but now they saw their companies razed to the ground due to investors pulling out of them.

But even more shocking was that an unknown entity capitalized on their demise. There were few such prominent players, but this one was special like it knew the future and predicted this downfall.

Few experts warned about such a scenario, but no one took it seriously; now, it was happening right before them.

While it was unfolding, Samuel was busy doing his daily training and relaxing. He was not concerned about it as they had been preparing for it since he took over the firm. For him, it was all about his next move.

Inside the Rothschild headquarters, Robert was having a meeting with his secretary, Paul. They were discussing the event.

" It was fortunate that we took a passive approach." He asked.

" Yes, We also made some money after hedging the market. Our three firms are still in the trade, but we already got twice our investment this past week." Paul answered.

" Good, He is truly remarkable. This past year has been an eye-opener for me. How about his firm?"

" He has good people working there, so I don't think you have to worry about it. I have met Abigail a few times, and she is a very competent individual. They are taking an aggressive stance which will reveal their movements to other people."

" I know. But most of them would write it off as a lucky move because of his age. For others, our family name is enough. Although they may get jealous, what can they do about it? But just to be sure, tighten the security a little."

" That is ideal. The film will also begin its production soon, so he will be in public most of the time. I will look for some capable people for the job."

At noon, Samuel visited the firm. It was time for him to hunt down emerging companies that would sustain value in the long run.

He wanted to be there for a few more days and put everything in order. He knew he had capable people inside the company, and after this event, he would let them act autonomously.

" Our next plan is to invest in tech giants and other blue chip stocks. We can't sustain this performance in the long run. "

" Tech sector is an odd choice. After witnessing this event, It will be the same for other investors. It will be hard for them to trust it again." Abigail said. Anyone would feel the same; Manan and Marilyn agreed with her statement.

" That may be, but it would definitely shift in the future. As you have witnessed for the past five years, we have seen dozens of millionaires. Why is that? Because the technology is advancing at a rapid rate which will lead to more opportunities."

Abigail was not convinced but considering Samuel's track record, she had to think about it more clearly.

" It was unfortunate, but we should have a diverse portfolio to make our customers more assured. From my experience, it will be hard to sell if we focus on only one sector." Manan said.

" Yes, but we will allocate a large chunk for angel investments for tech business and buying shares in large corporations. Microsoft, Apple, etc., I want a team solely responsible for acquiring stocks from these tech giants.

We also have to focus on other parts of the world, which may take a few years, but we will extend our reach to every sector of every large economy. That is our end goal."

" That sounds very daunting and sinister, like some shady corporation," Marilyn said honestly. Samuel's vision for the company sounds like a shadow government that exists in the dark but holds considerable power over the populace.

" That may be true, but, That is what we have to achieve. I am not trying to do anything terrible, but my end goal is to make a network from which we could piggyback our other businesses.

It has always been that way. My family operated like this for decades, like other notable consortiums. The only difference is that they have consolidated their power in one or two regions, but I will like to extend it to every continent if I can."

Everyone stayed quiet; they were baffled by this child and his vision. Samuel also felt the inevitable change in their expression.

" Ok, don't think about it too much. It is only a dream which could take many years, so we should focus on the present. For now, focus on what you have been doing but invest our profits and keep an eye on the new businesses.

If you find it a viable choice, you could invest in these companies; I would not be here as I will be going on tour to shoot the new movie.

And if it does good numbers, there are three more books to adapt, so I will be busy."

They had a long discussion with other staff members and senior traders. Samuel praised them for their accomplishment and promised a hefty bonus and other incentives.

A happy employee was always more efficient with their work and would have some respect for the company he worked for. He was trying to increase the company's reputation through this. Many new people were recently hired, which might feel alienated, but Samuel's attitude was the same with everyone.

After finishing his work, he returned home to find Eleanor waiting for him. She had been here for a few months, only returning for a few days. Which was a pain for Laura as she had been struggling to stay sane; it was almost like she was living her teenage years all over again.

" Sami, you are back. Here have some of these sweets; I heard they were great. " Eleanor was sitting with Laura in the garden. As usual, they enjoyed tea; it was part of their daily routine.

Samuel greeted them and picked up one of them. The box looked overly decorated, meaning they were expensive and probably imported. The taste was great, but it paled compared to other sweets he would occasionally have.

" What is the occasion? You two are never together." He asked. It must be something important.

" I am thinking about going back. It has been a long time, and your grandpa worries about me." Eleanor said.

" Oh, I understand. It is not like you could stay here permanently." Samuel said.

" I wish I could! But I also have things to take care of. "

" Don't give her weird ideas. I can't believe Dad let you stay here for this long. Besides, Miles must be crying his eyes out, missing his mom too." Laura said from the side.

" Why do you think he is like that? You have been bullying him all this time!"

" I can't help it if he is too weak. I was only teaching him a few things, but he always cried."

They began arguing, but Samuel mediated to resolve the issue as always. He had become a master in such a thing after their countless arguments.

That night, Eleanor boarded her plane to leave for the USA. It was fun for a few months, but she had a business. Her subordinates would plead with her daily, and they were the happiest when she decided to return.