While it’s not possible to predict happenings of any sort in financial markets, being prepared for potential market crashes is prudent of all wise investors says the Oxford Club.
Thirty years and one week ago, Black Monday – October 19, 1987 – hit worldwide financial markets. The Dow, an index composed of 65 of the world’s most high-powered stocks, dipped 22.6%, a then-astounding sum of 508 points in the short, 9:30-to-4:00 window of trading hours.
At the time, the global stock market had hit a peak just two months prior to the infamous Black Monday. Nothing had spurred Black Monday outside of many brokers deciding to sell off shares – no government meltdowns or companies engaging in fraud. Algorithms that determine the direction of the stock market were blamed for the market failure. They’re still in place today, although no person or entity, in particular, is to blame.
Alexander Green, Chief Investment Strategist of The Oxford Club, recently wrote an article detailing basic things every investor should do to prepare themselves for widespread financial market failure.
Don’t react irrationally to markets experiencing failure in the interim – if you can’t anticipate them, certainly don’t react to them. Diversify your portfolio of stocks, bonds, and other assets broadly. Utilize trailing stops, and don’t be afraid to keep a large wad of cash in your checking account.
The Oxford Club was created in 1989 and has tens of thousands of members across the world. It helps people make good decisions as investors.
Currently hosting an astounding 80,000 members, The Oxford Club is the largest organization of its sort.
The Oxford Club also publishes newsletters and articles through Investment U, an investment advice website that was founded nearly two decades ago. In looking out for the best of investors’ interests, Investment U is free to browse.