Active investors are very aware of the date of October 19th. It is difficult to imagine a more harrowing day than that one in 1987. The 22.6% market loss remains the highest and most heartbreaking single-day percentage loss to this day. With the recent marking of the 30th anniversary of this crash, many are looking ahead and planning for the next one. While flash crashes have been occurring in the intervening years, Black Monday is still a careful reminder of the damage a crash can cause.
The Oxford Club is a private investment club with Alexander Green serving as its Chief Investment Officer. As a stockbroker on that memorable day, he remembers the sense of panic and dismay that severe market losses can cause. With this in mind, he has issued three baseline strategies for successfully preparing for and weathering the next big crash, whenever it may happen. It is imperative to note that there was no significant news event that prompted these historical crashes or more recent flash crashes.
The three key strategies that the Oxford Club’s Green recommends are the investment in top quality and non-speculative stocks, a high level of diversification, and increasing one’s holdings in cash. With this foundation, investors can protect themselves from the next market crash. Significant cash holdings offer an additional perk as it serves as an asset that will be able to quickly take advantage of any Bear market downturn.
The Oxford Club is a private investment club that has been successfully serving its members for numerous decades. With over 80,000 members located across the globe, its reach is expansive. This organization offers its members actionable reporting and analysis to give them a head start in successful investment during any type of market. Their research provides a deep look at current market trends.