401k Asset Allocation

For current Stock Market Trend

 Last 10 years               Red line is the 1 year average

 00    01          02          03         04          05          06         07          08          09       May 2010 

                       Stock Market Index Chart  =  S&P 500 Index 

Notice the cross point for stock market collapses

The 1 year average is the average price over the past 12 months.

This is calculated by taking the end of the month price for the past 12 months,

then adding them up and dividing by 12.

Stocks and mutual funds can not begin a long decline unless the stock market goes below its 1 year average first and it can not begin a long upward climb until it goes above its 1 year average first. It is a common sense approach to understanding the trend.  

When the market goes up or down, all stocks and funds in a 401k Plan will follow. This includes funds in Fidelity, Vanguard, American, Principal and etc...

Click: Market Timing to see the current stock market trend.

Lee Smith, Consultant is a license business that provides asset allocation and investment strategy advice as financial advisors for retirement accounts.

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