The stock market crash of 1987 had a devastating effect on the stock market and the United States economy. The DOW dropped 508 points in one day which was almost a quarter of the market. This was the largest loss in the stock market to date. The crash caught everyone completely off guard because there were no warning signs that this would happen. Brokers and analyst were in total shock and disbelief hoping they would snap out of a bad nightmare. Computer based trading along with a mass exodus from the market contributed to the crash. The computer programs were suppose to prevent these type problems, but instead magnified the crash. Regulators have made changes to the markets to help prevent this from happening again, but so called “flash crashes” still occur. For example, on August 24, 2015, the market dropped suddenly by 1,100 points in the early minutes of trading in response to a major drop in China’s market.
Some valuable lessons have been learned from these crashes. One of the most important is that there is usually calm before the storm. The smartest investors anticipate changes and don’t react to them. Reactions typically are emotional and can have a devastating run with the herd effect.
The Oxford Club is an elite group of private investors and entrepreneurs. The primary goal of the Club is to protect and increase the wealth of its more than 80,000 members. The club has been around for over 20 years and has been able to achieve its primary goal every year. The club feels that the best opportunities are usually not released to the press. The club strives on these little known investments and focuses on high reward low risk opportunities.
The Oxford Club was founded in 1989 and is based in Baltimore, Maryland. The club has less than 100 employees. Their proven investment system continuously takes advantage of the market. The club recommends a wide variety of investments from bonds to precious metals. Besides financial gains, members of the club enjoy a vast network of connections within the club.