Chapter 89: Irrational exuberance

Today is Monday, September 3rd. The stock market, which had been closed for two days, reopened for business. Stocks representing new energy and new technology continued their very good momentum and led the three major stock markets. The stocks of military enterprises also maintained a very good upward trend due to large orders from the Ministry of Defence and the impact of the situation in the Middle East. However, perhaps the market is very confident in the situation in the Middle East, so the upward trend has slowed compared to last week.

As of the afternoon closing bell, the average rise in the value of military stocks did not exceed 2 percent. GM and Phoenix, which received orders from the Ministry of Defence, did not rise by more than 5 percent.

...

This is the financial news on Brighton TV. In a villa in Cambridge, Zhou Minglin Muqing, Tong Gang Li Cheng and Irbeldov are sitting on the sofa watching the TV.

This is the villa they recently bought because they didn't want to stay in a hotel all the time. After a month of investment, they have already doubled their profits, not to mention a luxury home. However, they will not be here for long, so they plan to give the villa to Zhou Ming directly after they leave. That is why they chose Cambridge, where Harvard is located.

'It seems that the Brighton Consortium has really responded and is already intervening in the stock movements of military enterprises. Otherwise, the military stocks dominated by General Motors and Phoenix in recent times would not have risen so weakly,' Irbedov said, leaning back on the sofa.

'This is certain. Although rising stock prices help with financing and enhance corporate value, these large conglomerates don't need it. On the contrary, the inflated stock prices will give them a headache. After all, a company is different from speculation. Other funds used for speculation can be withdrawn at any time, but they have to stay and plug the hole. No capitalist wants to do this kind of work for others,' Li Cheng said.

Tong Gang finally said, 'But even the Brighton consortium understands that the general trend of the market cannot be defied, so they are just trying to suppress the rise in stock prices, but they have not suppressed it to negative growth.'

'Fortunately, Mr. Zhou Ming's investment model has long calculated this point, otherwise our return on investment would have fallen below one percent in the past few days,' Irbeldov said, looking at Zhou Ming, 'But Mr. Zhou Ming, since the major consortium has deliberately suppressed the growth rate of military enterprises, why don't we switch the battlefield? From the recent stock movements, I can see that the new technology companies focusing on computer software technology have been doing very well, haven't they?'

Facing Irbeldov's question, Zhou Ming did not rush to answer. He first turned his gaze to Tong Gang and Li Chengwen and asked, 'Is this what you think too?'

'Capital always needs to be invested where it can get the greatest return,' Tong Gang said to Zhou Ming. His words were very brief, but the meaning was clear.

'Indeed, I agree with Chairman Tong's statement. Capital is always profit-oriented. If there is a better or more profitable investment direction, then capital's choice will definitely be the best,' Zhou Ming said.

Tong Gang, Li Cheng, and Yerbedov's eyes lit up, but before they could say anything, Zhou Ming continued, "Don't be so happy just yet, because I still have some questions that I haven't figured out yet. How many financial statements of computer technology companies have you read? Do you know exactly how profitable a few of these companies are? Or do you have a few of these companies" development plans on hand?'

This series of questions left Tong Gang, Li Cheng, and Irbedov confused. It wasn't that the questions were weird or difficult, but rather that they were the simplest and most important questions.

It was precisely because they were simple and important that they were even more alarming, because they couldn't answer them.

Tong Gang, Li Cheng, and Irbedov looked at each other, and finally Tong Gang asked Zhou Ming, 'Do you think that the current technology stocks are a bubble?'

'I don't know if it's a bubble, but it's definitely an irrational boom,' Zhou Ming said.

'Irrational boom?' Tong Gang, Li Cheng and Ildebaldov exclaimed in unison, clearly hearing the term for the first time.

Zhou Ming nodded and said, 'It is irrational prosperity. This is not a positive or negative term, but an objective law that must exist. Because both we and other investors are always talking about this bubble and that bubble, then how did these bubbles form?'

'Of course it is the influx of hot money and the wave of speculation,' Irbedov said, 'but we are not speculating, we can completely leave before the bubble bursts.'

'But the key is that we don't know when the bubble will burst,' Li Cheng picked up where Irbedov left off.

Zhou Ming shook his head: 'The key point I was talking about is not here, but what will happen to the funds once the bubble is burst?'

Tong Gang, Li Cheng and Irbedov were all stunned. They obviously did not expect Zhou Ming to suddenly ask such an irrelevant question, but Li Cheng still answered: 'Of course it is to withdraw at any cost and then look for new investment opportunities.'

'Yes, and now we want to choose technology stocks, isn't that a new investment opportunity?' Irbeldov said, 'I understand that when a bubble bursts, capital withdraws, and when a bubble is blown up, capital flows in. This cycle is an irrational boom; but...we are not the federal government, we are not obliged to help them stabilise the market, as long as we can make money, that's fine!'

'It seems that none of you have understood what Brother Zhou Ming really meant,' Tong Gang sighed, 'What he really meant was for us to create new investment opportunities, not to follow in someone else's footsteps.'

'It seems that Chairman Tong understands me better. This is exactly what I meant. The good or bad of the American investment market or the survival of investors has nothing to do with me, so of course I don't worry about them, but I do worry about myself.'

Zhou Ming said: 'From international oil futures to military stocks, and even the Hong Kong stock index that I bought at the beginning, I have always been speculating in markets that others have done well. That's why I have to constantly worry about when this bubble will burst, what means the market makers will use to control price fluctuations, when I should enter the market, when I should leave, and how I can maximise my profits.'

Zhou Ming let out a sigh and continued, 'Luckily, I've been pretty lucky, and I can predict the dealer's every move. But no matter how lucky I am, there will come a day when my luck runs out. And gambling in a casino where the rules are set by others is still too risky, at least not something a normal investor should rely on.'

'Of course, the most important thing is that this approach is exhausting. I need a less stressful way to play,' Zhou Ming added.

'So what are you going to do, little brother Zhou Ming?' Tong Gang asked.

'Find a way to take control myself,' Zhou Ming replied.

Although they had long expected this answer, when they heard it with their own ears, it still made Li Cheng and Yerbol make an exhalation. Yerbol asked in disbelief, 'Mr. Zhou Ming, are you trying to create a market bubble yourself?'

'Mr. Yerbol, do you think this is feasible?' Zhou Ming asked.

If someone else had asked this question, Irbedov would have definitely given an impossible answer. After all, creating a market bubble is not as simple as it sounds. Not only does it require huge amounts of capital, but also a lot of social resources, such as public opinion publicity, follow-up and fueling by other investment companies, and even policy support. Only by piecing these together can a big bubble be formed.

These conditions are undoubtedly very harsh, otherwise everyone can be a banker, right? What are those consortia doing desperately expanding their capital and controlling as many resources as possible?

Even in the country, in Beier, in Gangcheng, Zhou Ming couldn't blow up a bubble just by relying on their support, let alone now that they are in the United States. They don't have any capital, public opinion, or mobilizable social resources, so how can they sit in the driver's seat and blow up a bubble?

But this person in front of him is Zhou Ming, who has created miracle after miracle in front of him, giving Irbedov the feeling that his common sense is not working here. Therefore, even though there is obviously no possibility of Zhou Ming becoming the boss, Irbedov always feels that Zhou Ming will succeed. As Zhou Ming often says, how will you know if you don't try? However, Zhou Ming's answer then almost made him pass out.

'Of course it's impossible. We're in the United States now, and with such a poor foundation, how can we possibly dominate a market? Unless you, Irbedov, can convince Northern Russia to go to war with the United States,' said Zhou Ming.

'Mr. Zhou Ming, please don't joke around,' said Irbedov helplessly.

Although Zhou Ming's answer was the most normal and reasonable one, the feeling of being made a fool of still made Irbedov want to go crazy.

In contrast to Irbedov's craziness, Zhou Ming laughed and said, 'Okay, I'm not joking anymore. Even with the resources we have now, it's completely impossible to blow up a market bubble, but what if it's just a certain company?'

Ilbeidorf, who had just wilted, instantly came to life again, and the eyes of Tong Gang and Li Cheng were also filled with light, because Zhou Ming had indeed pointed them in a very bright direction. They must remember that they now had nearly one billion dollars in their hands. This capital might be too small in the face of the entire market, but if it was just targeting a single company, it would still be very easy to set the pace, not to mention that the entire technology market was full of bubbles.

It is very easy to help blow a bubble in a bubble, and it is also very easy to hide yourself.

Tong Gang thought of something and asked Zhou Ming, 'So this is the reason why you just asked us how many computer technology companies we have read financial statements, earnings and development white papers?'

Zhou Ming laughed, 'Chairman Tong, you can't hide anything from me. There's no other way. After all, the arms sector is deliberately suppressed by the consortium, and the profits are getting smaller and smaller. I can't help but find a way to develop a new investment direction. But there are so many companies in the stock market, and there are still the three major markets. I have a headache just looking at so many companies. So now that Mr. Tong Gang, Mr. Li Cheng, and Mr. Yerbedov have already raised it, I'll leave it to you.'

Zhou Ming said these last few words with a serious expression, but in the ears of Tong Gang, Li Cheng and Ilderbiev, they felt like they had been taken advantage of.

'So...Mr Zhou Ming, are you not participating in the finance class?' Ilderbiev asked.

'Of course they are participating, but they are designing a new investment model. However, as you know, Mr. Il'bedov, the technology market is inherently a bubble, and it is difficult to decide how to plan the investment ratio in it.' Zhou Ming continued, "And now the new semester at Harvard is about to begin, and the students in the finance class will have to prepare for the courses in the new semester.'

Listening to Zhou Ming's words, Tong Gang, Li Cheng, and Il'bedov were all at a loss. In the end, Tong Gang said, "Okay, I understand. We will take care of this matter.'

'That would be perfect!' Zhou Ming said happily.

Zhou Ming then left the villa, but as soon as he walked out, the smile on his face disappeared and was replaced by a frown.

'You're still worried, aren't you?' Lin Muqing asked.

'How could I not be worried?' Zhou Ming said helplessly.