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Which US Market Index to Follow

Which US market index to follow

Following just a single US Market Index is not enough.

 

To know the overall direction of the US stock market and to invest your savings wisely, you want to follow a US market index. However, there are a few different US market indices. How do you know which US market index to follow?

Here we answer that question for you, taking into account what you want to do with the answer.

When you want to know the long-term direction of the US stock market, we suggest that you do not focus on just one US market index.

 

Long-term US Trend Direction

 

At Stock Trend Investing, we follow the four most important indices.

Two of these four are indices for the two major stock exchanges in the US:

Warning – Do You Work Too Hard and Forget Your Savings?

 

 

Do you work too hard and are you too busy to make your savings work for you? There is no problem with working hard. I encourage that. But when you neglect your savings and what they can do for you, too long, you may not do yourself a favor. Here is a simple solution.

When you work hard and keep your expenses lower than your earnings, you save money. Every month, you see your savings growing. That is a great feeling.

 

You Lose Money on Your Savings Account

 

If you are like most people, you just keep your savings somewhere on a savings account. This nets you probably at this moment somewhere between the 2% and 3% interest per year.

No Stop Loss Orders for Long-term Investors

 Stop loss orders are avoided by long-term investors

Can you think of a scenario in which a long-term investor needs a stop loss order?

 

Using a stop-loss order is highly recommended by and for most traders in the stock market. However, the Stock Trend Investing system does not have any stop-loss orders.

This is controversial. Why don’t I use them? We will explain here using a few different scenarios.

In summary, you can say that we do not use stop loss orders at Stock Trend Investing because we are long-term investors and not frequent traders. That requires some further explanation.

As long-term trend investors, we want to capitalize on trends that last many months or years. On average, we see that the long-term trend only changes direction once in the two or three years.

Here is Why You need Stock Trend Investing

Tou need an stock investing strategy that has your interest as its priority

Use a stock market investing strategy that has your interest as its priority.

 

Let’s have a look at three different groups of people and how they invest their savings.

S&P 500 Index Investing - lost 1.35% during May 2011 - but what is it YTD and YoY?

S&P 500 Index Trend Investing for Long-term success in the market

The S&P 500 has been growing your savings in dollars over the last year.

 

During the month of May 2011, the S&P 500 lost 1.35%. By the end of May, however, the S&P 500 gained 7% so far this year.

Year-on-year, compared to end of May 2010, the S&p 500 is up 23%.

Click here to see the S&P 500 history chart.

We publish every month the updated long-term trend indicators for the S&P 500 on this website.

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Get Better Trend Trading and Index Investing Results

 

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The information contained on this website and from any communication related to this website is for information purposes only. We do not make recommendations for buying or selling any securities or options. We make financial suggestions and it is up to the visitors to make their own decisions, or to consult with a registered investment advisor when evaluating the information on Stock Trend Investing. Read more...