| ne I have to share is considered the most easily | | | | viewed by month to month instead of day to day |
| understood because it is based on common sense. | | | | with straighten out all these lines you see in a |
| Give me five minutes of your time to read this to | | | | chart. By doing this you will see straight lines being |
| see my point. | | | | formed over the long term. It is like watching the |
| The way to look at the stock market is by | | | | market in slow motion because you are able to |
| viewing its chart. To know if the market is | | | | see when the market was up and down. |
| performing bad is to see when the 1 year low | | | | There are a lot of articles written on mutual fund |
| was. The 1 year low means the stock market | | | | strategies but none will tell you why or how the |
| price is below the same price it was 1 year ago. It | | | | strategy works. The answer lies in the chart |
| also means no money was made in your | | | | because this is physical evidence of what is |
| retirement account. As long as the market is | | | | currently happening now. These are real |
| above its 1 year low in the past 12 months it | | | | companies with their stock prices going up or |
| means you are no longer losing money in your | | | | down. When the majority of stock prices are |
| retirement account. | | | | going down, it is a clear indication that most |
| To see if the stock market is stabilized is to look | | | | investors are selling. The reason they are selling is |
| at its 1 year average. The 1 year average is the | | | | because these companies are about to be earning |
| average price over the past 12 months. As long | | | | less revenue than before. |
| as the market is above its 1 year average this | | | | The key to a successful retirement plan is to |
| means the stock market is moving up and you | | | | finish every year with a positive percentage rate. |
| are making money in your retirement account. | | | | This means your mutual funds have to go up |
| The chart shows how all the stocks of companies | | | | from January 1 to December 31. |
| are performing. These stocks are in the mutual | | | | Keys points are: |
| funds that you have in your retirement account. | | | | 1. Mutual Funds are a collection of stocks from |
| The companies in mutual funds are the same in | | | | many companies. |
| the S&P 500 Index. The S&P 500 Index | | | | 2. The companies in mutual funds are the same in |
| is a list of the 500 biggest companies in the world | | | | the S&P 500 Index. |
| such as Walmart, Verizon, Sony, Exxon, Pepsi and | | | | 3. The S&P 500 Index is considered the |
| hundreds more. By following the S&P 500 | | | | benchmark of the stock market because of all |
| Index you can see what and how the overall | | | | the big companies in it. |
| market is doing. Other indexes are the Dow Jones | | | | 4. It has to be above its 1 year low because this |
| Index but it only has 30 companies and the | | | | means the stock market has stopped dropping. |
| Nasdaq Index which has many small companies. | | | | 5. It has to be above its 1 year average for the |
| These two Indexes follow the lead of S&P | | | | stock market to be moving up. The 1 year |
| 500 Index because of its more established | | | | average is the average price over the past 12 |
| companies. | | | | months. |
| To understand how the market works is go to | | | | 6. Look at the chart of this index using the month |
| any website investment page and click on the | | | | to month price instead of the day to day price. |
| ticker symbol for this index. Next is to set the | | | | This will erase all the fluctuations and make |
| time frame for months. When you look at the | | | | straight lines. |
| market over the past 12 months with the month | | | | To see how this works and receive addition |
| to month price instead of the day to day price | | | | information on protecting your retirement during |
| you will notice all the zig zags are gone. The zig | | | | stock market cycles please visit the website. I |
| zaging of price movements is what confuses | | | | have articles on Forbes, MSN Money, Yahoo |
| people because all you see is the fluctuations in | | | | Finance, CBS Moneywatch, CNBC and Fox |
| price. | | | | Business News. |
| This is caused from the buying and selling of | | | | You will find this is the best investment strategy |
| stocks from millions of people. Setting the time | | | | for mutual funds because it is shows how to |
| frame of the S&P 500 Index chart to be | | | | understand the stock market trend. |