Black Monday 2.0? 📉

"When a stampede begins, most will join the herd." [Shield] AN OXFORD CLUB PUBLICATION [Liberty Through Wealth]( [View in browser]( SPONSORED [Get Marc's Top 5 Dividend Stocks (FREE PICKS)]( World-renowned income expert Marc Lichtenfeld just released his [Ultimate Dividend Package](. Inside, you'll find his TOP FIVE dividend stocks right now. And today, he's giving you this package... completely free of charge! To get your FREE dividend recommendations, [click here now](. EDITOR'S NOTE Interested in discovering Alexander Green's [No. 1 stock right now]( It's a holding that [he personally invested $100,000 of his OWN money into](. If you'd like to trade alongside the best, [click here](. But don't delay! [Or you may miss out on a profit windfall.]( - Nicole Labra, Senior Managing Editor THE SHORTEST WAY TO A RICH LIFE [Is a Stock Market Crash Headed Our Way?]( [Alexander Green | Chief Investment Strategist | The Oxford Club]( [Alexander Green]( On Tuesday, Oxford Club CEO Todd Skousen, my colleague and fellow investment analyst Marc Lichtenfeld, and I met with Members in our new online Clubroom, where we talked about the outlook for the economy and the markets. Getting right down to business, Todd asked Marc and me about the odds of a stock market crash. Despite this week's rally, it's not an idle question. There are several parallels between what's happened lately and what happened just before the last crash. I know. I was an equity manager on Black Monday - October 19, 1987. It was one of those "Where were you?" moments that I'll never forget. Let me set the stage... After a long, lackluster period for stocks beginning in 1966, a powerful bull market began in 1982. The Dow peaked in August 1987 - and then began to meander lower. The week before the crash, the sell-off intensified with the market declining more than 9%. The crash on Black Monday started in Hong Kong and quickly spread to Europe. When the U.S. market opened, it gapped lower. And then just kept falling. I remember everyone at the firm gazing at the red numbers on our terminals - and shaking our heads. The mood at first was one of surprise. Then of shock. Then distress set in. By the time the market closed - down a shocking 23% in a single session - I heard hysterical laughter from some brokers and bankers simply unable to process what had happened. No government had failed. No currency had collapsed. No hedge fund had blown up. There was essentially a news vacuum, aside from the crash itself, which terrified investors. After all, the last time the stock market had crashed, it ushered in the Great Depression. SPONSORED [The #1 Energy Passive Income Investment for 2023]( It's not a stock, bond or private company... But this little-known alternative investment could hand you BIG MONTHLY INCOME from the oil and gas surge in 2023. [CLICK HERE TO FIND OUT WHAT IT IS]( What was responsible for Black Monday? Two things: investor panic and program selling. The first is understandable. The latter? Not so much. Only academics and economists are foolish enough to believe that you can count on people to be rational, self-interested actors. They are not. Not all the time, anyway. When a stampede begins, most will join the herd, even if it means acting against their best interests. And that's what happened on Black Monday. Panicky investors and program traders knocked stocks down. That set off more panic and new program trades that drove share prices lower still. End result? A full-blown crash. Now let's return to today's financial worries... Inflation is high. Interest rates are rising. China - the world's second-largest economy - is floundering. With mortgage rates near 8%, the housing market has come to a screeching halt. We have a hot war in Ukraine and the Middle East. There is widespread political dysfunction here at home. And the S&P 500 just entered a correction... as it did just before the market crashed in 1987. Is a crash on the horizon? No one can say it's not a possibility. But I rate it a low probability for several reasons. First off, we are not at the tail of a yearslong bull market, as we were 36 years ago. This one only kicked off in October of last year. Just a handful of big-name tech stocks have made really big moves higher. And we don't see the kind of nosebleed valuations and investor euphoria that characterize market tops. Indeed, polls show that most Americans are skeptical about the strength of the economy and fearful about the outlook for stocks. If anything, they are too pessimistic. The economy is solid, growing at nearly 5% in the third quarter. Unemployment is near record lows. (There are 1.5 jobs available for every American looking for work.) And consumer spending remains strong, thanks to rising wages, trillions in leftover pandemic savings and vastly improved household balance sheets, due to higher home and equity prices than a year ago. Another reason a crash is less likely today is that the Securities and Exchange Commission now institutes cross-market trading halts in the event of a severe sell-off. These circuit breakers kick in at three thresholds: Level 1 (7%), Level 2 (13%) and Level 3 (20%). If the market hits Level 1 or Level 2 before 3:25 p.m. ET, trading will halt for 15 minutes. (Trading will not be halted after 3:25 p.m.) The 15-minute pause is meant to give traders time to assess the situation and act rationally, not emotionally. If the market hits Level 3 - a decline of 20% - trading will halt for the remainder of the day. The circuit breakers were triggered for the first time on October 27, 1997. That was due to a currency crisis in Asia, later dubbed the "Asian Contagion." Then, during the brief bear market that followed the onset of the COVID-19 pandemic in the spring of 2020, they were triggered four times in 10 days. That did the trick. We had a rapid bear market - the shortest in history - but no crash. Still, a market crash is a possibility and something every investor should prepare for. How? In my next column, I'll explain exactly what you should do. You'll be surprised to find how much you can protect... and how much you can profit. Good investing, Alex [Leave a Comment]( [IU 2024]( WEALTH OPPORTUNITIES - [Sign Up for the New and Improved GVI Investor. First 75 Today Get Thousands Off and Auto-Entry Into a $15K-Value Dream Sweepstakes!]( - ["My First Impression Was 'You've GOT to Be KIDDING Me!'" - Bill O'Reilly]( - [Today Is the Perfect Day to Buy Bonds]( - [Use Support and Resistance Levels to Avoid Chaos in Your Portfolio]( JOIN THE CONVERSATION [Facebook]( [Facebook]( [LinkedIn logo]( [LinkedIn]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Liberty%20Through%20Wealth...&body=From%20Liberty%20Through%20Wealth:%0D%0A%0D%22When%20a%20stampede%20begins,%20most%20will%20join%20the%20herd.%22%0A%0D [Email Share](mailto:?subject=A%20great%20piece%20from%20Liberty%20Through%20Wealth...&body=From%20Liberty%20Through%20Wealth:%0D%0A%0D%22When%20a%20stampede%20begins,%20most%20will%20join%20the%20herd.%22%0A%0D MORE FROM LIBERTY THROUGH WEALTH [Construction in America]( [The Biggest Economic Mystery?]( [candlestick graph]( [Check Out This Powerful Trading Strategy]( [Piggy Bank Family]( [How Much Money Is Enough?]( [American Money]( [Why Some Americans Are Rich (But Most Aren't)]( SPONSORED [🌟 Commodities Supercycle Begins! 🌟]( During the last commodities supercycle, commodities triumphed with returns of over 500%, while stocks returned 0%. Marc Lichtenfeld is revealing how to make the most out of the next supercycle. [Join his Commodities Supercycle Summit now! 💰🔥]( [The Oxford Club]( You are receiving this email because you subscribed to Liberty Through Wealth. Liberty Through Wealth is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. [Privacy Policy]( | [Whitelist Liberty Through Wealth]( | [Unsubscribe]( © 2023 The Oxford Club, LLC All Rights Reserved The Oxford Club | [105 West Monument Street](#) | [Baltimore, MD 21201](#) North America: [877.806.4508](#) | International: [+1.443.353.4610](#) [Oxfordclub.com]( Nothing published by The Oxford Club should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed personalized investment advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after publication before trading on a recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, LLC, 105 West Monument Street, Baltimore, MD 21201.