When George Soros and Hedge Funds Were Caught in the Internet Stocks Crash

Posted Jan 24, 2022, 6:15 AMUpdated on Jan 24, 2022 at 6:57 am

From 1997 to March 2000, the price of American technology and Internet stocks had increased more than 5 times on Wall Street. Tesla (created in 2003), Facebook (2004), Twitter (2006), and bitcoin (2009) did not exist yet. The icons were then called Yahoo!, Cisco, Dell, Qualcomm. In 1999, Google, identified as a promising start-up, earned only $220,000.

The largest US hedge funds could not stay away from the bubble of the century. But on March 15, 2000, the traders of the most important of them, George Soros’ Quantum Fund, are helpless. The Nasdaq, the technology stock market, plunges and drags the Dow Jones in its wake. Overheated power cables regularly set off the alarm in the trading room, as “a form of warning of divine wrath” about to strike, reports the “Wall Street Journal” at the time.

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