This year marked the 30-year anniversary of the infamous stock market fall in the year of 1987. Even though anniversaries are generally marked with celebrations, it is unlikely that anyone would be celebrating this occasion other than a rare few short sellers. On the 19th October 1987, Dow plunged by over 500 points in a single day, which was the only most significant fall in a day and accounts for over 22 percent of the market strength. The market fall in those times wasn’t triggered by anything specific as the global markets were pretty stable, the economic situation wasn’t dangerous, the currency wasn’t overvalued, no wars were breaking out, and no governments were falling.
However, the computer-driven stock programmed trading did add to the agony and resulted in the significant fall. The automated high-frequency algorithms that SEC blamed for the collapse are the ones that are still in use today. What one learns from it is that one should be able to learn to read the market, and the lull before the storm is the sign that one must be able to decipher to make the most of the sluggish equity market. Currently, the markets have been overwhelmingly calm and disciplined, which might be the sign anyone might be looking for. Holding on to the cash and investing during the sluggish market is the right thing to do.
Oxford Club is one of the most reputed and reliable global network of entrepreneurs and investors with over 80,000 members. Oxford Club engages in in-depth analysis and research of the financial and equity markets from across the globe to read the market trends and speculate the market movements to provide its members with early signs that would help them make more profits and avoid losses. Oxford Club shares with its member’s various investment opportunities that are expected to provide excellent returns in the future.