30 years ago this month the bottom fell out of the Dow Jones Industrial. For those who are familiar with the stock exchanges October 19, 1987 would become known as “Black Monday.” This was the day that the Dow literally plunged 508 points, losing almost 23 percent of its value. Even the crash that spurred on the Great Depression wasn’t as bad as the one in 1987. How do you weather the storm when crashes like this will inevitably occur? This is where the Oxford Club comes in. They seek to educate you on how to profitably invest.
First of all, as an investment professional I was there on the floor on that day. I remember the shock when the Quotron lit up with red (sell bids) all across the boards. Brokers everywhere were losing their wits trying to help their clients cope with the immense amount of sell orders coming in.
Although the market had been picky leading up to this event, there was nothing that could have “triggered” this immense amount of sell bids. This crash was completely unexpected. Although there were many changes in response to this out-of-the-blue crash, these types of events still occur from time to time. Indeed, there have been a number of them even in the 2010’s.
So how should an investor react to bear markets? Well, one of the things they should do is to not react based on emotion. Instead, they should anticipate a market downturn. In today’s world, the market is near some extreme highs. This means you should place an emphasis on quality and engage in asset allocation. You also should have a broad diversification and have a reserve of cash. The rule of bears is that it is not if, but when.
The Oxford Club is a team of investors that educates people on ways to consistently beat the market.
These investment professionals are located all over the world and they help investors everywhere get the best rate of return possible.