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The signature of S&P 500 stock index during the last 30 years looks like a giant snake swallowing a camel. If you put in prospective the performance graph of "Fidelity flagships", Magellan (FMAGX) and Fidelity Small Cap Independence (FDSCX) it would resemble "a couple of dead warms squashed on the driveway after rainy day". Such performance graphs can gives you a glimpse of the realistic results of investing in actively managed funds. The failure of the "Fidelity fleet" to deliver is not an exception to the results of other actively managed funds, such as those managed by T. Rowe Price, Vanguard, Dodge & Cox.  If you research this you will discover their "long-term management of your savings" has brought similar performance results to those represented by the Fidelity results. 

Let’s conduct an unconventional ‘analysis’ of "the giant snake that swallowed a camel" profile – according to biological science, once a snake swallows a large prey it is very unlikely for such a creature to hunt soon as it needs time to digest, but security analysts would argue that biology has nothing to do with finance fundamentals.  They would insist on "stock market unpredictability" and suggest that if the snake wasn't ready, perhaps it would be an opportunity for the "skinny worms" to catch a giant prey.  University professors would confirm this theory and advise a "hold and buy more for long-term," especially when the prices are low. 

Jeremy Seigel, in his book titled, "Stocks for the Long Run" calculated that a dollar invested in stocks in 1802 would have grown to $11 million by the end of 2005 due to "the magic of compounding," so be patient!

With your long-term savings devastatingly shrunken by the end of 2008 and at least a decade of prior "compound earnings" completely wiped out, do you still believe in "hold and buy more for the long-term" strategy?  Do you still keep on "holding" because at any moment the market can jump up again according to its random, "unpredictable" nature?  "Come on," gamble for once and make a guess – how long do you think it would take for this rapidly falling line to reverse direction or at least become horizontal?  Is it tomorrow, next month, or by the end of 2009?

Buy and hold would've probably work for you...if you can wait a hundred years for a profit!  If you can't then choose a better strategy.  Click on the highlighted link and compare the 'buy-and-hold' performance of some of the largest mutual funds AGTHX VWELX FEQIX PVOYX VPMCX FBGRX JAVLX with the performance of Reverse Signals trading on the same funds. With an average of 2.5 trades per fund per calendar year, Reverse Signals trading system outperforms selected mutual funds by 30% as of the end of February, 2009.

 

Review the performance comparison by viewing the statistic tabs at www.ReverseSignals.com for thousands of Wall Street traded stocks and mutual funds. Reverse Signals your 401k or any investment portfolio and compare the results. Compare Buffett performance stock picks' "reverse signaled". You can try it for free.