Investment: S&P 500 Prediction

The current S&P 500 value is at USD 1,173.97There has been a general decline over the last three months covering the 2011 months of; June, July and August, which gradually flows from as early as the month of September the year 2010. This effect is as result of general market direction in the current economy. In the stock market in which prices are rising and are expected to continue rising, the stock prices of most companies rise and in a bear market stock prices of most companies will fall in turn. We can predict this by using the market sentiments that focus mainly on the whole market organization.

 Also, the performance of industries of S&P 500 also plays part in determining its stock price. In most cases the stock price of company’s gains and falls at the same at almost the same rate. We can use this to predict the stock market. One of the main purposes of S&P 500 stock prices index is to portray the pattern of common stock price movement.  Care is taken to avoid construction of a group in index in which the movement of a single, dominant stock can determine the movements. The value of S&P 500 is expected to continue declining for the next few months. Also for the past five years gross repurchases has reduced shares outstanding by two percent annually. With this employee stock option, assuming the equities continue thirty times their earnings I suggest that the retirement is likely to fall by half percent or less.