91-95

*Chapter 91: Profiting and Exiting*

The next day, Milo skipped his morning run.

After freeing himself from Monica and Zeta’s affectionate “attack,” he took a hot shower, put on a bathrobe, and walked into the dining room. While drying his hair, he picked up the milk from the table, drank it, and sat down to open the day’s newspaper.

As expected, New York newspapers rarely hold onto Hollywood stories for long.

After all, Hollywood is in Los Angeles, and for over twenty years, LA has been seen as New York’s biggest rival.

Just as LA newspapers are lackluster in reporting on New York, the reverse is true too.

After finishing the breakfast prepared by the maid, Milo closed the newspaper and got ready to change and head out.

Suit, tie, leather shoes, and a fitted blue cashmere coat on top—Milo dressed professionally and left his apartment building.

With his bodyguards escorting him, he got into the Cadillac.

“To the investment company.”

The Cadillac started slowly, following a similar car driven by Kenny. To reach Wall Street, located on New York’s waterfront tip, they had to cross half of Manhattan along Park Avenue from the Upper West Side.

Even with the windows closed, Milo could clearly hear the cursing and honking from the road.

He smiled wryly; of course, he was stuck in New York’s infamous traffic.

Taking out his laptop from his bag, he opened it, swiped on the touchpad, and pulled up the “Harry Potter” file from his novel folder. He set up the laptop on the desk in front of him and began writing.

Once he had cleaned up loose ends in London, he started "creating" this work. He had already written the first book, Harry Potter and the Sorcerer’s Stone, which was nearly 230,000 words, and was preparing it for release.

He was currently working on the second book, aiming to release it by the end of the year.

Unlike the original author who took eleven years to write all seven books, Milo planned to finish them in three to four years, with two books released per year. Once he finished, he could start preparing for the film adaptations.

But with the severe traffic outside, the shaking made it hard for him to keep typing. After just a few lines, he lost his writing mood.

New York’s traffic was too much.

On average, each New York commuter loses 74 hours per year to traffic jams. Although it ranks behind Washington, D.C., Los Angeles, and San Francisco in terms of worst traffic, New York’s congestion is frustrating enough.

Leaving home at nine, he didn’t reach the investment company until ten in the morning.

At the company, he tossed his coat over his arm to David behind him, entered the trading room, and called Nelson over to start the liquidation plan.

“Are we cashing out?”

Nelson was a bit surprised and thought it was a pity. “It looks like the benefits haven’t fully played out yet; it could still rise a bit more.”

He was talking about military stocks in the U.S. market.

With the overseas situation intensifying, U.S. defense stocks had surged wildly this month. Shares of several large arms manufacturers had even hit all-time highs.

“Trust me, Nelson. We’ve already made plenty; it’s time to exit.”

Milo held firm.

While there might still be another week of benefits ahead, he couldn’t wait any longer.

In about a week, the U.S. carrier fleet in that area would start withdrawing.

This would signal that Washington didn’t actually want a full confrontation.

At that point, military stocks would surely start to fall.

By now, Paladin Investments’ account in the U.S. stock market held $6.52 billion.

Lockheed Martin’s stock price, for example, reached a record high of $220.3, up over 225%, with $1.3 billion in shares held.

Raytheon’s stock was at $110.4, up over 300%, with about $850 million in holdings.

Other defense stocks, like General Dynamics, Northrop Grumman, and Boeing Defense, had also seen staggering gains over the past month.

With such high positions, to lock in these profits without losing value during the sell-off, they needed to sell quickly while the market sentiment was still hot.

Waiting for a potential peak a week later would risk giving up significant profits, especially with a sell-off frenzy, where they might take a big hit.

“Take advantage of Lockheed Martin’s announcement of a new round of C-130 military transport manufacturing plans, and sell off our Lockheed Martin shares.”

“The trading mood is hot now, so we can be bolder in offloading Lockheed Martin shares.”

“Sell 4,000 shares of Huntington Ingalls Industries to test if there’s any support below.”

“With Boeing Defense set to deliver the F-15 fighter jets, sell all our holdings and let others take over.”

In the trading room, Milo paced, monitoring the market and issuing commands.

In four hours, they offloaded $1.8 billion, and Huntington Ingalls’ stock went from today’s 6.8% gain down to -0.89%.

Fortunately, thanks to the still-hot defense stock wave, it was quickly pushed back up.

By the afternoon, Paladin Investments had offloaded $1.9 billion out of its total $6.5 billion holdings.

Only a few people grew cautious, while most remained caught up in the market’s fervor.

This was understandable.

Five years ago, the U.S. had only recently taken decisive military action, subduing one of the top three military powers in the Middle East.

There was no reason to back down now.

Most Americans conveniently forgot that the overseas nation in question had serious weaponry, incomparable to a desert nation like Iraq.

At this moment, Americans felt invincible, convinced that their country was number one in the world.

Everyone thought war was inevitable.

Even if the U.S. didn’t step in directly, it would likely support a proxy war.

As the saying goes, “Cannons mean gold.” This principle held in the West as well.

Whether fighting directly or through a proxy, companies like Lockheed Martin would profit enormously.

So, anyone who didn’t buy defense stocks now would be foolish, right?

Milo’s decision to exit now only made people think he had poor judgment or that he was making routine adjustments.

Even many institutions, including those closely monitoring Paladin Investments, like Morgan Stanley, mostly shrugged off Paladin’s big moves.

The next day, he sold another $1.2 billion.

On the third day, he sold an additional $1.5 billion.

On the fourth day, Friday, he completed the liquidation, selling the remaining ten-plus billion.

“Current balance: $6.64 billion. Initial investment: $5.08 billion. Profit: $1.56 billion.”

Milo counted.

Of the $5.08 billion, only a bit over $300 million was his leveraged loan. The other $4.7 billion was borrowed from eight banks.

This was money leveraged with financing.

The financing term was long, and the interest was hefty.

After repaying the banks, including the $400 million loan, and covering interest, what was left belonged entirely to him, about $1.34 billion.

“Yes, boss, $1.34 billion!”

Nelson’s face was flushed with excitement, and his hands were trembling slightly.

With no initial investment, they had made a killing of $1.34 billion in the stock market in just one month.

If this got out, it would shake all of Wall Street!

(End of Chapter)

*Chapter 92: Private Army*

A profit of $1.34 billion.

Even Milo, the mastermind behind all of this, found it unbelievable.

As far as Milo knew, the entire Blackburn family’s assets, including land scattered along the East Coast, were worth around $6.5 billion.

Most of these assets were fixed assets.

Primarily land and churches.

For instance, the Blackburn family holds a 5% stake in the famous Trinity Church in New York.

But again, most of this is in fixed assets.

In terms of actual liquid funds available for use, the Blackburn family generally has around $100 million at hand.

When urgent cash is needed, they even have to sell property or take out loans.

Yet now, within just a month, Milo had made $1.34 billion on Wall Street.

Almost a fifth of his entire family’s wealth, accumulated over three centuries.

In the U.S., real industries typically yield about 6-7% profit annually. If it’s well-managed, maybe 10% at best.

But in the world of finance, as long as you play your cards right, you’re looking at annual returns of tens of percentage points at minimum.

And on Wall Street, there are plenty of stories about annual returns of over 100%, or even several hundred percent.

No wonder the whole of America has been shifting from industry to finance — the money in finance is just too easy to make.

Suppressing his excitement, Milo looked at the traders in the room, their faces flushed, “Each trader will get a bonus of $20,000, and administrative staff outside will each receive $5,000. Let’s make everyone permanent employees.”

The traders had all performed exceptionally, including Nelson.

Most of the time, Nelson was the one directing, with Milo offering strategic insights.

So, “Nelson, your bonus is $1 million.”

At this, everyone cheered, and Nelson was called into Milo’s office.

“Contact the bank people. I want to borrow some stocks from them.”

Nelson walked in, still grinning with excitement, as he heard his boss say this.

Blinking, Nelson thought for a moment and asked, “Boss, do you think there won’t be a war?”

Milo leaned back in his chair, crossing his arms with a calm expression, “Actually, the market has already sensed something. Haven’t you noticed that the gains over the past two days haven’t been as crazy as before?”

Nelson nodded. In the U.S. stock market, defense stocks indeed hadn’t shown the same relentless surge they did a week ago.

But like many others, he thought this was just a short-term market adjustment.

A technical issue.

However, the boss seemed to think otherwise.

Previously, Nelson would have discussed it further, giving his boss as much advice as possible.

But now, after raking in $1.34 billion from nothing, Nelson decided to trust his boss’s judgment, especially since his boss did have people in Congress.

“Alright, I’ll contact other banks right away.”

Nelson added, “But today’s Friday. It’ll be Monday before we can finalize it.”

Milo nodded and waved his hand, “I understand. Just get prepared.”

As he walked out of the skyscraper where Paladin Investments was located, Milo felt a sense of ease wash over him.

Because he finally had money — real money.

Not like before, when he looked wealthy but most of his assets couldn’t be quickly liquidated.

Before today, his available cash flow wasn’t much.

Most of it came from film royalties and his copyright company.

Yes, Disney did treat him differently from other independent film companies, paying him more promptly.

But the movie had just recently finished its theater run, and theaters hadn’t settled the revenue with Disney yet.

Disney wasn’t going to front Milo the money either.

So, there was very little return from the film so far.

From the copyright company, only a few million dollars a month.

So Milo had actually always been “poor,” even having to take out a loan to buy a home in New York.

But now that’s all changed.

$1.34 billion — even after setting aside the bulk for shorting next week, he could still keep a couple of hundred million for other things.

Money makes everything easier; without it, you’re stuck in place.

This principle applies in every country, culture, and race worldwide.

In the car, Milo collected his thoughts and said, “Kenny, there’s something I want you to do.”

David focused on driving while Kenny turned around to look at Milo. “Boss, what is it?”

“You know, I beat up the New York mayor’s nephew recently. The CIA agreed to keep an eye on things for me, but the CIA has no formal law enforcement power domestically. The Italians have deep ties with the New York Mafia, and they might use underhanded tactics. I want to strengthen my security.”

Milo spoke seriously.

“Do you want to bring in more people from back home?” Kenny thought for a moment and asked thoughtfully.

“We can’t bring in any more people from home. I know that half of you are already by my side now, but my grandfather and others back home still need security too, so...”

Milo reached over, patted Kenny on the shoulder, and said, “I’m planning to establish or acquire an additional security company.”

This idea had been brewing for a while, rooted in his fear of death.

Ever since he was shot in Beverly Hills, he had wanted his own security team.

His family’s bodyguards were reliable but few in number.

The Blackburn family’s security team fluctuated between twenty and thirty people.

Of those, the core security personnel — trusted ones like David and Kenny — numbered less than ten.

These few people were spread across the family.

Besides them, the family hired another ten to twenty security contractors.

These contractors primarily handled perimeter security, signing short-term contracts every few months, so they were essentially outsiders.

With his newfound financial resources, Milo wanted to create a security company of his own.

Nothing is sadder than having plenty of money but no people.

David, who was focused on driving, couldn’t resist glancing back at his boss.

And Kenny scratched his head and said, “Boss, I’m not too experienced with this...”

He was a professional bodyguard, with experience in the CIA and Secret Service.

When it came to protecting people and arranging security, he was highly skilled.

But running a security company? He had no experience with that.

“Acquiring or setting up the company doesn’t need to be done by you two. I know that’s not your specialty.”

Milo laughed and continued, “What I want you to do is handle part of the training for our personnel once the security company is established and select my personal bodyguards.”

Kenny sighed in relief, smiling, “That’s fine by me. David can do a great job too.”

David, still driving, nodded in agreement.

“Great.” Milo leaned back, smiling. “I just wanted to give you a heads-up. Now you know.”

The private security business in America has always been booming.

This is a country where gunfire is a common sight, and even presidents have been assassinated multiple times.

Plus, in every war America has either participated in or initiated, private armies have played a role.

During the Vietnam War, the official U.S. military numbered around 359,000.

But there were 70,000 contractors, roughly one for every five soldiers.

In the Gulf War five years ago, 541,000 official troops fought alongside 5,200 unofficial ones.

That's one contractor for every 100 official soldiers.

These military contractors are also known as PMCs.

They often provide high-end personal security services, essentially acting as bodyguards.

Milo wanted to acquire or set up this kind of company.

One that could provide bodyguard services for him and his people.

And, if necessary, could transform into a private army — a PMC company.

*Chapter 93: The Blueprint of an Industrial Empire*

Saturday, March 1, 1996.

A gentle morning breeze played with the bedroom curtains, letting streams of sunlight filter through the gaps.

Monica was awakened—not naturally, but by a peculiar and unmistakable sensation within her body.

She could only manage soft, breathless gasps as she glanced back at Milo with a dazed, dreamy look.

The room echoed with nothing but rhythmic sounds...

---

After breakfast and a quick scan of the newspaper, Milo found himself slightly bored.

It was Saturday, and in New York, he only had one company operational at the moment. With no immediate tasks on hand, his initial thought was to head to Los Angeles. But with important commitments on Monday, leaving now would complicate things with jet lag.

Standing by the floor-to-ceiling window, Milo stretched with a satisfied grin. The morning's activity had indeed done wonders for his mood—though perhaps at Monica's expense.

She hadn’t managed to get out of bed yet. Milo smirked, thinking back to Catherine Zeta-Jones, who had flown back to Los Angeles the previous day for the pre-release campaign of Shakespeare in Love.  

His gaze shifted to the bustling traffic below. Steel rivers of cars flowed endlessly, while pedestrians hurried by. A sudden wave of introspection washed over him—once upon a time, he too had been just another face in the crowd. Had someone, at that time, been gazing down like this, contemplating the world?

---

With nothing pressing, Milo made his way to the study. Booting up his computer, he opened Excel and began typing:

- Paladin Film Company

- Paladin Investment Company

- Paladin Copyright Company

These were his three existing companies. Besides these, he also held shares in over 58 Silicon Valley startups, which Wendy was currently managing on his behalf.

After a moment’s thought, Milo added another name to the list: *Paladin Capital.*

His plan was to establish this new company as a holding entity for all his tech-related investments. Any future ventures involving private equity or acquisitions would also operate under this banner.

He typed a final name into the spreadsheet: *Paladin Milo Company.*

This would be his security firm. The name resonated with a personal touch—"Paladin" signifying "knight" in English, and "Milo" translating to "warrior." Together, they symbolized the Blackburn family’s legacy—knight and warrior.

Now, it was just the warrior who remained.

---

Leaning back in his chair, Milo contemplated the growing number of companies under his control. He knew it was time to recruit talented professionals to manage his assets and investments.

Wendy, though trustworthy and capable, wasn’t enough. She was already overextended with the film company and overseeing the tech investments.

Milo envisioned forming a think tank—a strategic advisory group to oversee his expanding portfolio and future assets. While Wendy and Neilson had been sufficient for smaller deals and negotiations, the scale of his ambitions required an elite, specialized business team.

His family's influence offered little support in this regard. The Blackburns had clout in religion, politics, and the military—but not much in commerce. Even within Boston's elite, their commercial power was relatively modest.

Milo’s goal was to build a power base independent of Boston's influence. Especially now that he had confirmed his ability to leverage his unique talents in finance, his confidence in growing his wealth was unmatched.

---

Retrieving a business card from his leather organizer—a gift from his great-uncle Benjamin—Milo examined it carefully. The card belonged to the CEO of a prominent headhunting firm in New York.

Dialing the number, Milo introduced himself warmly:

“Hello, Mr. Daniel. This is Milo Blackburn.”

“Ah, Mr. Blackburn! What a pleasant surprise. How can I assist you today?” Daniel’s voice was cheerful and direct.

“I’m looking for top-tier talent. Can your firm help?”

“Absolutely! At Heidrick & Struggles, we specialize in executive search and leadership consulting. Do you have specific requirements in mind? Gender, age, ethnicity?”

“I’ll email you the details shortly,” Milo replied with a light laugh.

“Very well, Mr. Blackburn.”

After hanging up, Milo tapped the armrest of his chair thoughtfully. Engaging a headhunting firm for an entire advisory team might seem extravagant, but it was a necessary investment for the future.

He envisioned a comprehensive think tank—experts in PR, like Karen Hughes, alongside strategists and financial wizards—capable of managing his expanding empire. This would not only streamline operations but also shield his wealth from marital or inheritance disputes that could fracture his burgeoning conglomerate.

Marriage to Arianna was still a distant prospect, but Milo believed in preparing early.

---

Gazing at the Excel spreadsheet on his screen, Milo reflected on his blueprint:

- *Film* represented media—a tool for influence and messaging.

- *Investments* symbolized finance—the lifeblood of American industry.

- *Security* ensured protection—a last resort for power consolidation.

- *Silicon Valley* embodied innovation—a domain yet to be fully dominated.

But what else?

His thoughts turned to powerful dynasties like the Rockefellers and Morgans.

The Rockefellers weren’t just about Manhattan banking; they had diversified into oil, railroads, pharmaceuticals, arms, and even the arts. The Morgans, similarly, extended beyond finance into automobiles, mining, and telecommunications.

Even Boston’s elite maintained dominance in defense and pharmaceuticals alongside finance.

Milo inhaled deeply, a rough outline of his industrial empire forming in his mind.

He knew what he wanted. And he would build it.

(End of Chapter)

*Chapter 94: Pure Bloodline*

3:30 PM.

Milo headed to Rochester, upstate New York, for an appointment.

Earlier that afternoon, during lunch, Jim, who seemed to know everything, called him and invited him to lunch.

Milo, already dining with Monica at the time, declined.

Undeterred, the ever-flexible Jim invited him to a golf game later that afternoon.

This time, Milo agreed, as he was collaborating with Jim.

At a recent banquet, Milo and Murdoch had discussed a potential collaboration on a variety show.

Jim was also present at the time. After the event, neither Milo nor Murdoch gave it much thought.

But Jim, ever enthusiastic, had been tirelessly running between Milo and Murdoch, trying to make it happen.

Twice, Jim even showed up outside Milo's apartment, pretending to bump into him by coincidence.

Opportunities favor the prepared.

It’s reminiscent of when Chow Yun-fat was still struggling; he would visit the Peninsula Hotel every day, just in case Sir Run Run Shaw came by for tea—just to operate the elevator and leave an impression.

With Paladin Pictures currently understaffed, Milo figured Jim could serve as the middleman.

Milo would handle the creative work and rights; Jim's TV production team would produce the show, and finally, they’d sell it to Murdoch’s Fox.

Yes, the idea was for a yet-to-exist "American Idol."

This venture brought Milo into collaboration with both Jim and Murdoch.

Jim claimed that Murdoch had already agreed to attend this afternoon’s gathering.

Milo didn’t care whether that was true or not.

He had no plans for the afternoon anyway—staying home would just mean fooling around with Monica, who was beginning to show signs of psychological exhaustion.

So he decided to bring her along for a change of scenery.

Rochester is home to a legendary golf course with a competitive edge—Oak Hill Country Club's East Course, which has hosted several major championships.

Consistently listed among the world’s top 100 courses by GOLF Magazine, Oak Hill’s East Course is a classic, designed by the renowned course architect Donald Ross.

Its signature elevated greens have challenged the best golfers in multiple majors, combining design flair with a high degree of difficulty.

It’s a favorite retreat for New York’s elite, who come here on weekends or downtime to relax, socialize, or network.

Driving through the scenic course, Milo and Monica arrived at the sports center adjacent to the main grounds.

The facility was divided into several enclosed spaces—badminton courts, tennis courts, and beginner golf practice areas.

Milo spotted Jim sweating it out on a tennis court. Despite his portly figure, Jim moved with surprising agility—a flexible middle-aged man with a jiggling belly.

No wonder he could dodge bullets.

On the other side of the court was a stunning blonde with wavy hair, clad in professional women’s tennis attire, her toned legs visible under her short skirt.

Nearby, Murdoch, dressed for golf but wearing a baseball cap, waved at Milo.

Milo smiled back and turned to Monica. "Let’s head over."

The two, dressed in matching blue and pink sportswear and white flat-brimmed hats, walked toward the court.

Monica glanced at the blonde on the tennis court and whispered, "She looks like a professional athlete."

Milo agreed. The blonde's skill was evident, and she was clearly going easy on Jim.

From a distance, she appeared quite young, likely under 20.

“This is the reality of the world,” Milo said with a quiet laugh. “Even if you’re talented and beautiful, you still have to bow to capital.”

They approached Murdoch and exchanged greetings.

“Oh, dear Milo, you’re finally here. Care to play a round?” Jim called out, pausing his game and walking over with a smile. “Anna here is a pro! She even won this year’s ITF Newcomer of the Year award!”

As he spoke, Jim glanced at Monica. Despite having seen his share of beautiful women, Jim was momentarily awestruck by her Italian elegance.

Her flawless features, alluring gaze, and an air that was both dignified and seductive made her unforgettable.

But Jim only stole a glance.

While exceptional beauty is rare, it’s not unique.

Moreover, the basic principle of not coveting a friend’s partner was something Jim adhered to.

At his level, women were never in short supply.

Milo, itching to play, noticed Murdoch approaching. He smiled and said, “Sure, though I’m no match for a pro.”

“It’s just for fun. If it were serious, all of us combined wouldn’t stand a chance against Anna—she’s a rising star in the tennis world,” Jim laughed.

Nodding, Milo took the racket from Jim.

Although he hadn’t played tennis before, his physical prowess and muscle memory from his previous life allowed him to hold his own.

The blonde, Anna, adjusted her pace, lobbing balls at Milo to ease him into the game.

Before long, Milo found his rhythm and started enjoying the sport’s satisfying, rhythmic hits.

But soon enough, he was sweating profusely and remembered the purpose of the meeting.

Catching a ball, Milo gestured for a break. “Monica, want to give it a shot?”

Monica hesitated, wide-eyed. “Oh, I’m sorry, but I don’t know how to play tennis…”

“Just for fun. You’ll pick it up,” Milo said, beckoning her.

Reluctantly, Monica joined the game, while Milo returned to sit between Jim and Murdoch.

Watching the two women play, even if one was a pro and the other a novice, was a visual delight.

The three men began discussing the American Idol project.

The collaboration was essentially finalized.

Jim and Murdoch would each invest $40 million. Milo wouldn’t need to contribute financially, offering only the rights and creative input, valued at $60 million.

Future profits would be split 4:4:6.

Though it seemed Jim and Murdoch were getting the short end of the deal, they knew better.

Milo’s proposal was extraordinarily detailed—practically a ready-to-go format.

As industry veterans, Jim and Murdoch recognized the lucrative potential.

Given Milo’s current popularity, he could easily take the concept elsewhere if they hesitated.

Moreover, Milo had preemptively protected his intellectual property, securing creative protections for elements like red buzzers, swivel chairs, and hidden panels.

Anyone attempting to copy the concept would risk a lengthy and costly lawsuit in the U.S., where intellectual property laws are rigorously enforced—assuming, of course, the plaintiff was "one of their own."

Milo’s lineage, with its deep ties to the upper echelons of the establishment, was far more “pure” than the German-Australian Anglo background of the others.

(End of Chapter)

Chapter 95: The Big Short on Wall Street

March arrived, bringing with it the springtime charm of New York.

From a bird's-eye view, the outskirts of the city revealed a lush green tapestry. Dark green patches marked the trees, while lighter green stretches signified grassy expanses.

In the urban core, a network of highways wove through towering skyscrapers, creating a dynamic cityscape. The Manhattan River, calm and glistening under the sun, encircled the borough. The silhouette of Manhattan—defined by its iconic skyscrapers and sprawling bridges—exuded the grandeur of a modern metropolis.

---

After a relatively pleasant weekend, Milo arrived at Paladin Investments on Monday morning at 9:20 AM, Eastern Time.

Thanks to weekend preparations, Nelson had finalized agreements with multiple banks. Paladin Investments secured $10 billion in leverage using $2 billion as margin, allowing the firm to acquire $50 billion worth of shares in major defense companies like Lockheed Martin, Huntington Ingalls Industries, Boeing Defense, and General Dynamics.

At the market’s opening, Lockheed Martin's stock surged by 5.5%, reaching an all-time high of $245.30 per share.

In the trading room, Milo, after a brief exchange with Nelson, paused thoughtfully before issuing a command:

“Start selling Lockheed Martin stock in batches of 1,000 to 5,000 shares. Push the price down.”

The margin account tied to Lockheed Martin held only $2 billion, allowing for a maximum leverage of five times. The tolerable price increase was capped at 25 points.

With $10 billion in account funds, the maximum permissible loss was $1.4 billion, as losses exceeding 70% would trigger a forced liquidation. A price above $255.50 per share would freeze the account due to insufficient margin.

With around $10 per share of leeway, Milo recognized the high risk—but also the high reward. If he could liquidate his shares around $240 per share, he would cash in approximately $10 billion. Later, when Lockheed Martin’s price dropped to about $200, he could repurchase all the shares for just $8.3 billion, pocketing a $1.7 billion profit.

This was the essence of short selling.

Leveraging his position, Milo effectively controlled over 1% of the total shares in the defense sector. In the absence of major shareholders selling, he became the largest short seller in the sector.

As Milo began offloading his holdings to cash out, the stock prices steadily declined. Within moments, the upward trend of key defense stocks halted. The charts showed sharp reversals, and the K-line dipped downward.

---

This move caused a market uproar.

Facing an influx of positive news, Milo’s contrarian short-selling was perceived as an audacious move, drawing attention from Wall Street institutions. The sudden, decisive short-selling begged the question: Why?

Could there be a major piece of negative news yet to surface?

Wall Street firms, like hounds catching the scent of something amiss, were eager to uncover the motive. While most institutions would take time to trace the funds back to Paladin Investments and then to Milo, Morgan Stanley (both its headquarters and Morgan Stanley Smith Barney, just 200 meters away from Paladin) already knew.

---

At Morgan Stanley’s market division, Group 5 had been monitoring Paladin Investments for some time.

When Milo’s actions caused a stir, the group, led by Yu Katona, was among the first to notice.

“He’s challenging the entire market?” Katona exclaimed, though he refrained from launching a counterattack against Milo.

Wall Street was no place for fools.

Turning to two of his subordinates, Hardy and Lewis, Katona posed a question:

“Or… does he have inside information? Something from Washington?”

Otherwise, what gave Milo the confidence to short-sell in a rising market?

Lewis, in charge of intelligence for the group, shook his head.

“We haven’t received any news. Either Washington hasn’t shared, or the company hasn’t passed it down to us.”

Both scenarios seemed unlikely.

It was unthinkable that Washington would keep Morgan Stanley out of the loop. In the American financial empire, Morgan Stanley and its affiliates were unrivaled in accessing insider information.

Even if Milo’s father were a congressman—or even the President—his reach wouldn’t surpass Morgan Stanley’s.

---

“Unless,” Lewis added, “Milo is predicting that Washington will back down in the ongoing standoff.”

Katona fell silent, considering the possibility.

The stock market thrives on anticipated outcomes.

If people believed a stock would rise, it often did, regardless of fundamentals. Conversely, doubts could cause even the strongest stock to falter.

Previously, the belief that the U.S. would go to war—or at least engage in a proxy conflict—had driven defense stocks to surge. Yet, a month had passed, and the anticipated conflict remained hypothetical.

By now, defense stocks were showing signs of fatigue. Their apparent strength was largely propped up by investors hoping for a payday or positioning for a future short sale.

At Morgan Stanley, diversified strategies ensured some teams supported the upward trend, while others prepared for a downturn.

---

Katona issued a cautious directive:

“No news from Washington likely means no change. Proceed with margin trading but remain cautious.”

Hardy and Lewis quickly moved into action, understanding the risks—but also the potential rewards.

(End of Chapter)