Newport News, VA. WiredPRNews.com — Consultant Lee Smith is issuing an update on market timing for mutual funds in a 401k and IRA. A investment strategy for the remainder of the year is needed as the recession is ending.
From January 1, 2009 to today, the S&P 500 Index is up a positive 9%. From August 10, 2008 to today, the market is still down a negative 23%. Retirement accounts that are invested in mutual funds with growth companies have risen this year and now have a plus percentage.
The stock market is up over 40% since having its low for the year in March. With the rally being so high and fast the market should start to level out and continue sideways for the 3rd quarter of the year. The Commerce Department released its gross domestic product (GDP) report stating, “the economy declined 1% in the 2nd quarter of the year for a record four straight quarters, which is the longest streak since 1947”.
Government Economists agree the recession and the GDP is bottoming out and the worst is behind the U.S. This means that the recession should remain stuck in neutral for the present time which is still affecting a number of businesses. It will take another 5 months to see if the recession is over and the economy is growing.
The market timing strategy for the remainder of the year has two options:
1. The market will continue to trade in its current range for the rest of the year. It could range from a negative or positive 15% until 2010. This depends on the economy’s GDP.
2. Since the market is not in a bull market, investors who do not want to take a chance on a negative return should remain in money market funds.
To keep up with current and future reports on the stock market, visit:
The website also provides information on protecting retirement accounts by knowing the stock market cycles.
Lee Smith is a licensed business owner as a Stock Market Consultant for mutual funds in a IRA and 401K. He has articles on Forbes, Bloomberg, Kiplingers and MSN Money.
Lee Smith, Consultant
12551 Jefferson Ave. Suite 101- #600
Newport News, VA 23602
Toll Free: 1-888-666-1019
Email: [email protected]