The small/mid cap component represents half of our 401k management program. The above returns represent the return you would have experienced in the Fidelity Low Priced Stock Fund had you not used our system vs. if you DID use our system. The period of time represented is the top of the market in Oct '07 until today, Oct 7 '09.
The way our system works:
- Determine which investments in your 401k represent the small / mid cap asset class.
- When we let you know the market is good, invest half of your 401k into one or more of these funds.
- When the status of the market changes, we will notify you. At this point you would switch the small/mid cap funds into the money market.
The entire idea is to protect your 401k in bad markets and capitalize in the good markets.
This system has done exactly that. You don't have to wait years just to break even after a bad market. This system allows you to exercise good judgement as it pertains to your 401k.
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