NEWPORT NEWS, Va., May 30, 2014 /PRNewswire/ — Lee Smith who covers stock market analysis is giving an updated report on the current stock market trend. The U.S. stock market (S&P 500 Index) still maintains a 1900 points basis.
The stock market at present is above its 6 month and 24 month moving average price. Lee Smith states: "Two times in the last 15 years when the stock market price has gone below its 6 month and 24 month moving average price, there has been a stock market crash to its 1 year low. The 6 month moving average price is the short term trend and the 24 month moving average price is the long term trend."
The S&P 500 Index is at its all-time high and would drop by more than 50% if it was to fall to its last low of under 900 points as in 2009. In 2000 and 2007, when this Index made its two previous highs, both times within 2 years it was followed by a downside of over 40%.
Matt Timmons, who has a 401k with Fidelity Investments, told Lee Smith in an interview: "In 2008 when the market collapsed, my retirement plan declined by 45% and I should have switched to money market funds back then."
Understanding trends in the market and learning how to invest in mutual funds will help investors make informed decisions on asset allocation in retirement accounts. One key indicator that gives a reflection on the markets is by studying Indexes in mutual funds.
Using Vanguard Index Funds as an example of the gains in stocks and mutual funds:
1. Vanguard Total Stock Market Index Fund (Covers stocks in the United States):
15% for the past 1 year and 44% for the past 2 years
2. Vanguard Total International Stock Index Fund (Covers stocks in different countries):
9% for the past 1 year and 32% for the past 2 years
This translates into the global equities for all stock markets to be slowing down when comparing the 1-year and 2-year difference.
To follow the short and long-term stock market trend that predates the next market collapse and which is based on factual statistics, please see: http://www.youtube.com/watch?v=AIhb5PaEKBs
About:
Lee Smith is a stock market consultant that reports on market trends, mutual funds and best stocks to buy.
Related links:
http://www.youtube.com/user/stocksnet
http://www.youtube.com/watch?v=JBBfD8hhrsM
http://www.youtube.com/user/beststockstoinvest
http://www.youtube.com/watch?v=QfHtpBt1vN0
Contact:
Lee Smith
757-598-1734