Just a few days longer than a full thirty years ago, the infamous Black Monday wreaked havoc on financial markets. That October 19, 1987, day of trading brought a stock market plunge of never-before-seen proportions. It still holds – even through late 2017 – itself as the largest single-day drop in share price.
The Dow, an index of 65 public companies’ shares, dropped an alarming 22.6% on that October, 9:30-AM-to-4:00-PM day of trading traders now know as Black Monday.
According to the Securities and Exchange Commission – also known as the SEC, the United States’ authority on financial markets – Black Monday occurred as a direct result of algorithms that control financial markets and the value of their constituent shares.
Alexander Green, the chief investment strategist at The Oxford Club, recently shared several measures investors should take to guard against financial market crashes. It’s important to predict bear markets. If one isn’t able to predict them, they shouldn’t even think about reacting to market downturns, usually emotional in nature.
Investors also need to keep a large share of cash in their bank accounts, allowing them to scoop up cheap stock after market crashes and keep their families afloat.
Investment U was founded by the financial experts at The Oxford Club in 1999. Since, it’s grown into a commonly-used resource for learning more about financial markets, investing strategies, and other major – and not so major – topics regarding holding assets for long periods of time to generate a return and guard against inflation – investing.
The Oxford Club is led by figures that used to be deeply involved in the practice of financial management, although all of them currently work only for 80,000-plus members of The Oxford Club.
This private group of international investors is regarded around the world for sharing high-quality insights about happenings and trends in finance with their members.
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