The fuel that makes the stock market go up is simple – earnings.

Money FuelSure, factors like interest and inflation will have an impact – because they impact earnings. Without rising earnings to tempt investors to stay in the market — get outta the way – because it would take a titanium blockade to stop them from stripping off the dead-weight of their shares in the race to reach the familiar, safe returns of bonds. Therefore, studying the trends of earnings, interest and inflation should be a top priority for any investor. These are the trends that will reveal the stock market’s true status and clearly distinguish between a here-today, gone-tomorrow correction and a full-on, no-holds-barred bear market.

In VectorVest’s ‘Climate’ updates, we share the objective, mathematical assessment of each of these trends and what effect they have on the state of the market. Based on the favorable or unfavorable condition of interest, inflation and earnings the market will be in one of four possible stages of a bull or bear market…

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