The Price of the VectorVest Composite peaked on Friday, January 26th, and stock prices crashed on eight of the next nine trading days. It bottomed on Friday, February 9th, and has rallied somewhat since then. However, it’s been an up and down battle and the big money traders are worried.

So, what are they worried about? High stock prices? Rising bond yields? Rising interest rates? Rising inflation? Rising wages? Trump’s tariffs? Trade wars? Government deficits? A weaker economy? Weak auto sales? Slower housing starts? You name it.

Uncertainty reigns supreme, so what should we do? Stop speculating on what we don’t know and let the trend be our friend. That’s what we do here at VectorVest. For example, we track and analyze the direction of stock prices. It’s the single most important thing one needs to know to make money in stocks. We want to buy stocks in rising markets and protect profits in down markets.

How the Market Works video

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OK, but what about all the things the pros are worried about? I answered that question in Chapter 4 of my book, Stocks, Strategies & Common Sense.”

The key paragraph says: “We have to focus on the primary forces driving the market and not get bogged down or misdirected by useless headlines. Astute investors know that three powerful forces drive the stock market. They are known to everyone, but are usually misunderstood. They are related, but independent. They are measurable, but controversial. They convey the effects of all that happens and ultimately determine the fate of the market.”

I identified these forces as earnings, inflation and interest rates, and explained how they determine Bull and Bear Market Scenarios in a Special Presentation called, “How the Market Works,” on February 9, 2018. It’s simple. Earnings, inflation and interest rates embody The Sum of All Fears.


Put away those needless stock market fears. Start a trial today!