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Market Timing: Safe to Buy

Now is the time to buy safe stocks rising in price

Why we advocate buying during this time

One key factor that can influence your chances of success in the market is the overall market trend. As the saying goes, "a rising tide lifts all boats." Similarly, when the stock market is on an upward trajectory, more stocks tend to participate in the rally than those that decline. Investing during a rising market increases the likelihood of selecting stocks that rise in price, even those with weaker fundamentals. Conversely, when the market is declining, even top-performing stocks can suffer.

The VectorVest Composite (VVC) is our broad-market index and the foundation of our stock market analysis. It is an arithmetic indexed average of all the stocks in our database. The VVC provides a more accurate reflection of the overall market's movement. At times, you might notice major indexes showing mixed results—such as the Dow Jones declining while the S&P rises—leading to confusion about the market's true direction. By following the VVC, we gain a clearer understanding of broader market trend. VectorVest has developed market timing signals to identify the current trend of the VVC movements, thereby enhancing your chances of success. The core philosophy of VectorVest is to buy stocks that are rising in price, in a rising market. We do not advocate buying stocks when the market is in a downward trend.

Let the trend be your friend

The "Safe to Buy" scenario indicates that the market is trending higher, both week over week and day over day, ensuring you start off on the right foot.

Market Timing Trend Graph - Found on the Homepage

In the chart above, you can see that the green ‘Safe to Buy’ signals clearly indicate when the market is trending upward and accelerating. Investing in rising stocks within a rising market is a key strategy for long-term success.