How to Protect Yourself From the Next 1987 Type of Market Crash

Most of the time an anniversary commemorates a positive and memorable experience, but one particular anniversary recently occurred which, while memorable, was as far from a positive occurrence as one could get. Thirty years ago this year, the great stock market crash of 1987 occurred. When the stock market crashed it fell over 500 points, over 22% of its volume in one day. After one of the most unusual periods of unstable activity in the history of the market, the unthinkable happened, the bottom fell out.

No one was sure why it was happening, no one was sure when or even if it would stop. To be most certain no one was sure what, if anything would be left of the foundations of the America or for that matter the global economy when the smoke cleared. There seemed to be no trigger factor, no collapse of a global base currency, no major political figure suddenly dead, and no powerhouse government collapsing due to any number of reasons. Instead the only thing that existed was panic fueling panic, fear stoking fear, and uncertainty giving birth to deeper uncertainty.

A post-mortem of the events of 1987 discovered that the mass rush to leave the market was compounded by computer -driven program trading was what lead to the sudden and irreversible collapse. Of course, since this time there have been major changes to the industry, which supposedly have made it a virtual impossibility that such a collapse could ever happen again. We should all take comfort tin knowing that right? What if you were to be told that the protections that you think you have to prevent another 1987 are a sham, and that there is no peace of mind that such a collapse could be prevented in the future? What if you were to be told that there is a very real possibility that such a collapse could happen again, and that there is a real chance that it could happen very soon?

Today it appears that despite the “safeguards” that are in place, the market is on the verge of yet another incredible roller coaster ride, and there is significant concern to be warranted that it may very well end the same way that it did the last time. The more disconcerting thing however is that with today’s highly unstable economy combined with the increasing political instability among the world leading super powers, it could be much worse.

The unnatural calm that we have seen in market activity recently, combined with the sudden growth that has occurred in the last few weeks leads to even stronger indicators that there is a chance of a massive market event on the horizon. So what can you do to help protect yourself? There are some things such as diversify broadly, use trailing stops, and of course set aside large sums of cash, but there is so much more and the Oxford Club wants to share with you special reports that have been compiled that can help you learn them.

The Oxford Club is an international network of investors and entrepreneurs which is one of the leading private authorities on the development and growth of extraordinary wealth. With more than 80,000 members around the globe, it is also one of the largest investment networks in the world. Founded more than two decades ago, it has been a guiding light in all types of market conditions. The club is founded on and guided by a simple belief that the best opportunities for investment and growth development are found outside of the mainstream press and the standard market reports. The cub conducts its own research and shares its findings on the best market moves to make exclusively with its membership.

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