Investment U was founded in 1999, at the turn of the millennium as one of the first independent financial education sites. It prides on its online resources that provide a solution to questions that demand to obtain real financial freedom. It is educational arm of the Oxford Club, a private, international network of investors and entrepreneurs. They employ their time-tested and unique systems and principles to beat the market in its game. They offer members recommendations on the best places and stock to invest.
Investment U prepares you for the Next Market Crash
This week marks the 30-year anniversary of the 1987 stock market crash, however, with anniversaries meaning celebrations, it is highly unlikely that this is a celebratory incident. On October 19, 1987, the Dow plunged at a record-breaking 22.6%, making it the market’s single worst day, being in the stock market.
Considering the market peaked two months earlier, it started acting strange with wild riding ups and downs. On Monday, no one expected it would be a tumulus day for the stock market. At the opening bell, market averages plunged down; stocks didn’t open for several minutes and brokers struggled to match buyers with a tsunami of sellers.
Initially, these programs were expected to limit losses through analysis of the futures and existing options. Instead, they compounded losses, which triggered selling waves that created a vicious cycle.
Of course, changes have been made by regulators, albeit flash crashes still occur. For instance, August 24, 2015, saw the Dow plunged during the first five minutes of trading. This frantic sell-off was initiated by a drop in China’s market that cut across Europe before the U.S. opened its market opened.
Furthermore, bonds are not spared from flash crashes, on October 15, 2014, 10-Year Treasuries abruptly skyrocketed, and in a few minutes, yields plummeted 35 basis points.
These sudden dips and were attributed to automated high-frequency algorithms.
Follow The Oxford Club: https://www.linkedin.com/company/the-oxford-club