This investment advice I have to share is considered the most easily understood because it is based on common sense. Take a minute to understand. The way to look at the stock market is by viewing its chart. To know if the stock market is performing bad is to see when the 1 year low was.

The 1 year low means the stock market price is below the same price it was 1 year ago. As long as the stock market is above its 1 year low in the past 12 months it means you are no longer losing money in your retirement account.
 
To see if your asset allocation is stabilized is to look at its 1 year average. The one year average is based on the price over 1 year. When the market is above its 12 month moving average, then your retirement account is growing.

Other indexes are the Dow Jones Index but it only has 30 companies and the Nasdaq Index which has many small companies.These two Indexes follow the lead of S&P 500 Index because of its more established companies.
 
To understand how the stock market works is go to any website investment page and click on the ticker symbol for this index.When you look at the stock market over the past 12 months with the month to month price instead of the day to day price you will notice all the zig zags are gone.
 
There are a lot of articles written on mutual fund strategies and but none will tell you why or how the strategy works. When the majority of stock prices are going down, it is a clear indication that most investors are selling. Companies who have stock get sold when their earnings are less.
 
Stock prices go up when companies increase theirs earnings and they down when their earnings are decreasing. This all points to our economy. This is the increasing and decreasing of business services and products that are produced in the U.S.A.

The Government have Economists study how the U.S. economy is performing every month. It is easy to see if the U.S. economy is in a recession by comparing it to the stock market.

The zig zaging of price movements is where investors become confused because all they see is the changing in price.. Setting the time frame of the stock market chart to be viewed from month to month instead of day to day makes all these lines you see in a chart become straight. The stock market becomes a picture on pause because you are able to see when the market was rising down and up.

The key to a successful retirement plan is to finish every year with a positive percentage rate. This means your mutual funds have to go up from January 1 to December 31.
 
You will find this is the best investment strategy for mutual funds because it is talks about 401k Advice.
 

This entry was posted on Friday, October 16th, 2009 at 2:11 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.