Mutual Funds Controlled by Stock Market Cycles

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Lee Smith, analyst of stock market statistics, is issuing the free service to everyone that has a retirement plan. This includes a 401(k), IRA, Government, Military and Public Schools. Mutual funds in Vanguard, Fidelity, American Funds and all companies in the retirement industry will benefit because the market has yet to recoup its losses from 2008.

Before a recession begins, investors are able to transfer to safe mutual funds. After a recession, investors will enter the stock market when the indicator’s average is above normal. These are the only two phases that occur when the market corrects itself.

In an interview with Lee Smith: “A stock market cycle starts when the S&P 500 Index goes to a 1-year low; it will continue to go down until it stops. Once it moves up and crosses its 1-year average, the stock market as a whole continues going up until the next 1-year low.”

The leading indicator for stock market collapses by professional Mutual Fund Managers and Wall Street Advisors is the S&P 500 Index. The Index consists of 500 of the biggest companies in the world. Their stock prices rise and fall depending on their earnings, which is a reflection of the economy.

The companies in mutual funds are the same in the S&P 500 Index. The chart of this Index shows when to enter and exit mutual funds. According to Morningstar, Inc., money managers do not beat the Index on a long-term basis, causing it to be used as the benchmark for the overall market.

Will Stevens, who has a 401(k) with Principal Financial Group, says, “It works because the month-to-month price is used instead of the day-to-day price. All the lines in the chart are straight when the clutter is removed. An obvious pattern is formed when looking at the past 12 months of the stock market chart.”

The free service will educate retirement account holders and preserve the value of their account. It is the only service available that shows how the stock market works by protecting retirement accounts during stock market cycles.

About:

Lee Smith is a licensed business owner as a Stock Market Consultant. He provides defensive strategies to private and professional investors of mutual funds. He has articles on CBS Moneywatch, USA Today, Kiplinger’s and International Business Times.

This information is found on http://www.LeeSmith.info and is based on real events and statistical facts.