Investment Stategy For Stock Market Cycles

May 31, 2009 - PRLog -- This index consist of 500 of the biggest companies in the world and they rise and fall depending on their earnings which is a reflection of our economy. The stock market runs in cycles and follows the economy. The companies in mutual funds are the same in the S&P 500 Index.

It all starts when the stock market goes to a l year low. It will stay there until it goes up and crosses its 1 year average which is the average price over the past 12 months.

If you have mutual funds in a IRA or 401 k then you have seen the decline of your value in 2008. The last time the stock market dropped this far was in 2001 and 2002. Using the month to month price instead of the day to day price will eliminate all the fluctuations in a chart. This causes straight lines to form over the long term.

The market is currently a positive 6% percent for the year but still down 22% from 1 year ago. The one year low was in March  which makes the stock market stable in the short term.

This information is general knowledge on any website and can be found on  :
http://articles.shopsmarter.org/Art/218078/226/Financial-...