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The ‘Melt Up’ Is Here – Investor Optimism Hits a 17-Year High

Friday, April 7, 2017 4:34
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(Before It's News)

The switch flipped…
For the first time in years, greed is driving investors.
Instead of being fearful because of the 2008 bust, “Mom and Pop” are jumping back into stocks.
I call this the “Melt Up.” It's the final push higher in the bull market. And the gains could be extraordinary.
It's starting… right now. And that means now is the time to get on board.
Let me explain…
Fear has driven the markets for years. The idea of getting back into stocks was tough for Mom and Pop. But that has finally changed.
For the first time in years, investors have forgotten their fears… And they're excited to load up on stocks.
Investor optimism just hit its highest level in 17 years – since the dot-com bubble. This tells me the Melt Up is here.
Again, this is the simple idea that before the bull market has a major “Melt Down”… it will have a Melt Up, where prices soar as investors flood back into stocks.
That's happening right now. Investors are bullish once again. Take a look…
Investor optimism just hit a level we haven't seen in 17 years. But more important, stocks will likely move much higher before an eventual crash. History proves it…
The last time we saw a similar bullish extreme was at the beginning of 2004. The S&P 500 soared by over 50% in the three years after that extreme.
And while consumer optimism was a bad sign for stocks in 2000, at the end of the dot-com bubble, I believe today's market is more like 2004. And I believe a similar move higher is likely, starting now.
I know that might sound like a dangerous prediction. It seems that we should move OUT of stocks as everyone else moves in. But we don't want to miss out. We know there will be an eventual Melt Down… And that makes capitalizing on the Melt Up even more important.
We are in the late innings of this bull market. But the largest gains will come as investors pile back into stocks. That's beginning to happen right now.
The last time we saw a similar extreme, the S&P 500 moved up around 50% over the next three years. We could be at the start of a similar rally today. And that means that we want to continue owning stocks.
Good investing,
Steve
P.S. I recently put together a presentation on the power of the current Melt Up in stocks. It explains exactly how this idea works, and how savvy investors have used it to make fantastic profits over the years. You can view the entire presentation, free of charge, right here.


Source: http://www.stansberryresearch.com/dailywealth/3513/the-melt-up-is-here-investor-optimism-hits-a-17-year-high

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