The Oxford Club is a private, international network of investors and entrepreneurs that have helped over 800,000 investors for over two decades in over 100 different countries. The Club, one of the first of its kind, is headquartered in Baltimore, MD and established in 1989. Its chief investment strategists are Alexander Green and Marc Lichtenfeld. Their job is to find money-bearing investments that are deemed low-risk for its members with growth potential for sustained-future wealth. In addition, the oxford club provides educational opportunities through its educational branch, Investment U, providing investment courses and resources through its free e-letters, Investment U Daily and Wealthy Retirement, free premium version daily e-letter, “Investment U Plus. that gives advice on the current investment climate. The Oxford Club’s newsletter, “The Oxford Communique”, is one of the top country’s portfolios.
Lately, Alexander Green, the Chief Investment Strategist, through the Investment U branch of the club is remembering the 1987 stock market crash. He recalls it had no warnings, events or signs from home or abroad. On Black Monday, October 19th, the Dow fell 508 points, a phenomenon that has never occurred before. Two months earlier it peaked, then started raising and falling in 24-hour periods. At the opening bell market averages were dropping, followed by a wave of selling on the floor, and his Quotron showing red. Premium stocks were sold at bottom prices, and clients were scrabbling for answers.
The use of a computer program was supposed to reduce losses, compounded losses, and regulators had to make changes in the program, but flash crashes still happen from time to time.
On August 24, 2015 the Dow dropped almost 1,100 points due to China’s market.
October 15, 2014, 10-year Treasury bonds suddenly climbed, leaving a 35 points deficit.
And on May 6, 2010 the SEC updated its circuit-breaker rules. Now at a 7% drop in the S&P 500 it begins a halt, and at 20%, trading stops that day.
He asks, “What should we learn from these incidents”?
To begin with, a quiet market is not normal, and that could be a sign to beware. He also says top investors don’t react to bear market, but anticipate them. Meaning, when the market is near its high, demand top money bearers, your asset are placed properly, diversify your portfolio, use trailing stops, and have a good stash of cash on hand during the event and for the next bear market.
He cautions, it’s not if …. but when.