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Mike L. Shannon 12551 Jefferson Ave. Suite 101- #600 Newport News VA, 23602 757-927-3760 |
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Consultant Lee Smith is announcing the investment strategy rated the most effective against a bear market during stock market cycles.
Online PR News – 30-July-2009 –Lee Smith, a Financial Advisor is giving a top rating for the investment strategy that shows the signs of a bear market. This is a defensive strategy that protects mutual funds in a IRA and 401k. One can look at the chart of the S&P 500 Index to see the current update of the market. The S&P 500 Index is considered the over all leader for the stock market by mutual fund experts. This index hosts the 500 biggest companies in the world and their stock prices rise and fall depending on their earnings.
The strategy involves switching mutual funds when the stock market is at its first 1 year low and entering back in to the market after the last 1 year low. This is by following the average price of the stock market for the past 12 months, which is called the 1 year average. When the market is below or above its 1 year average it is depicting its average price over the long term.
Studies show that when the stock market is below its 1 year average and 1 year low, the market will continue to go down until it stabilizes. When the market eventually stops and decides to move up, it has to cross its 1 year average for the stock market trend to continue higher. The best way to view the chart of the S&P 500 Index is with its month to month price. This way all the ups and downs of the price movements will be erased. Using the day to day price of the chart will show to many fluctuations and this what confuses people.
At this present time from January 1st, the stock market is in the positive for the year. The percentage rate for the last 12 months is still negative. In the short term we are in a rally of bear market but the long term rally still remains well below a bull market rally.
Heather Miller, an investor with American Funds asks, "when is this bear market going to end? I can not retire now because of the loss I had in 2008. I still have not made back my money when the stock market went down in 2001 and 2002."
The questions facing retirement in the next 5 years is finding the strategy to protect the value of retirement account holders. For this to happen, investors need to research on their own and find a suitable investment strategy that they understand without the complexity.
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