The thirty year anniversary of the extraordinary stock market crash of 1987 is an appropriate time to remind investors of the thoroughly unpredictable nature of these events and the need to be prepared for the next one. The Oxford Club has an educational arm that is called Investment U and they offer some timely advice for potentially cataclysmic market moves.
The very nature of what has come to be known as Black Monday when the Dow Index plunged over 22% in a day has gone down in stock market lore as a black swan event that only short sellers could celebrate. Even top-rated blue-chip stocks were sold off in terrific fashion leaving many portfolios ruined and just as many Wall Street careers were cut short as a result.
One of the most eye-opening facts about Black Monday, October 19, 1987, was the fact that no single volatility-inducing event triggered the massive selloff such as a currency or government collapse. Much of the blame was assigned to computer-driven stock trading programs which were supposed to reduce losses but instead compounded them. Wave after wave of selling induced a panic and the vicious cycle brought about the devastating results.
Substantial new regulations were introduced as a result of this market madness and despite these changes, a so-called flash crash can still occur. This alarming fact when it is coupled with the eerie calm that markets have displayed in recent months should raise eyebrows among investors.
Investment U from the Oxford Club provides sound financial and investing advice and what they’ve noticed is that savvy market participants anticipate the next bear market rather than emotionally react when it occurs out of the blue. They encourage investors to raise more cash when the market is at all-time highs and emphasize quality holdings as well as a properly diversified portfolio.
The Oxford Club is a network of private individuals who value entrepreneurial practices and who are also astute investors. They have over 80,000 members and their goal is to help each one of them attain and enjoy financial freedom.
Investment U is their educational arm and they offer courses, conferences, and videos to help their members achieve “liberty through wealth”. Their investing materials are assembled by top veterans in the financial industry and renowned market experts.
Learn more about the Oxford Club: https://www.crunchbase.com/organization/the-oxford-club