February 13, 2020
Did you listen in last night? Because the Melt Up is here.
The S&P 500 Index is up more than 400% from its 2009 low… the Dow Jones Industrial Index is nearing 30,000… and essentially every investor in America is making money. Your “409K” as President Donald Trump might say, is flush.
In fact, the market is even treating “Democratic socialist” presidential candidate Bernie Sanders leading the Democratic primary as good news. Financial analyst C. Scott Garliss writes:
The stock market is viewing this positively because Wall Street thinks he is the easiest of the Democratic candidates for President Donald Trump to beat in a head-to-head election.
But the biggest winners from the next twist in the bull market might surprise you.
As American Consequences contributor Dr. Steve Sjuggerud said last night… while the money first flows to the “big names” – like the FAANG stocks – the real gains from the market’s next phase are going to be in companies that aren’t as obvious.
Here’s an example he gave of a past “mania” – the huge increase in gold prices that started in 2003… and continued soaring for nearly 10 years.
In 2003, my indicator told me to buy gold. And after analyzing it myself, I agreed.
Keep in mind that when I say indicator, I’m talking about a secret indicator that I’ve spent several million dollars developing. When the gold rally started, most people went out and bought physical gold. Just like most people will go out and buy the ordinary stocks, including the FAANG names.
And buying physical gold would’ve made you good money for sure. You would’ve just gotten in line with the gold price. You know, sort of like the index if it were stocks.
But I found a much better way to play the gold boom using the stock market. And that recommendation ultimately soared by 995%. That’s $100,000 in profits on a $10,000 investment.
If you’re interested in the Melt Up… and want to know how you can potentially make five to 10 times your money in the coming years… you’ve got to read Steve’s essay today…
Definitive Proof That the Melt Up Is Finally Here
Dr. Steve Sjuggerud
Still not sold on my Melt Up thesis?
Well, this essay is for you, my friend. And believe me, I get the concern.
I’ve been writing about the coming Melt Up for years. I first pitched the idea in 2015, long before the mainstream media latched onto the phrase.
The Melt Up is simply the final, euphoric push of a long bull market. It’s where the biggest and most explosive gains happen.
Few believe that’s possible today. They’re focusing on fear and missing the opportunity in front of them. But the reality is, the Melt Up is already happening – right now.
Today, I’ll share the simple fact that proves it…
The last Melt Up here in the U.S. was the dot-com boom in the late 1990s.
That explosive rally was driven by the Nasdaq Composite Index. That’s where all the hot tech stocks were then… And it’s where they are now.
I believe this time around, we’ll once again see incredible outperformance in U.S. stocks concentrated in these major tech names. History proves it – and I try to never argue with history when it comes to investing.
When you look at the previous Melt Up in stocks back in 1999, you can actually see the point where tech stocks left the boring companies in the dust.
The following chart shows this well. It compares the overall stock market – the Dow Jones Industrial Average – with the tech-heavy Nasdaq during the last 12 months of the bull market…
Tech stocks tracked in line with the overall market for most of 1999. Then, they took off – soaring more than 100% in less than six months.
It’s not unusual at all for tech stocks to lead the way in a stock market Melt Up. In fact, it’s typical. Investors latch onto a good speculative story, and they buy – regardless of valuation.
I expect we’ll see the same thing happen this time around. In fact, I’ve been saying it ever since I first called for a new Melt Up in stocks. And sure enough, it has already started.
No one’s been paying attention. But tech stocks have been crushing the boring Dow Jones Industrial Average over the last year. Take a look…
The last 12 months have been great year for stocks, period. But there have been clear winners.
The Nasdaq has been outperforming the overall market by a wide margin. It has nearly doubled the return of the Dow over the last year.
This, my friend, is the definitive signal of the Melt Up. The tech boom of the 1990s started with a general market rally… But it wasn’t until the Nasdaq started outperforming that things really heated up.
That’s happening right now. And it tells me the Melt Up is here.
Tech stocks were the big winners last time around. And I expect that’ll hold true this time, too. But you can do a lot more to take advantage of what’s going on…
The details are too much for today’s essay. But I’ve outlined all things Melt Up in my online event – and you can watch an exclusive replay by clicking right here.
It’s totally free, and I’ll give you a thorough update on what I see kicking off in the markets.
Now here are some of the stories we’re reading…
Riches From Rags
Wilson attributes the company’s success to two factors. First, he cares. As he says repeatedly during our hourslong visit, “I love rags!” Second, he’s a stickler for quality. “A rag is a tool,” he says. “No different than a screwdriver. Different tools for different applications. You have to make the tool and make it well.”
The Buck Sexton Show: Mayor Mini Mike Steps In It
AG Barr is tackling sanctuary cities, Roger Stone faces 9 years in prison, and a leaked tape is about to make things difficult for former NYC Mayor Michael Bloomberg, plus a special appearance from Empire Financial Research founder Whitney Tilson to talk about the real story going on with Tesla (TSLA).
Bernie Sanders Could Be the Stock Market’s Best Friend
It’s anyone’s guess what a huge increase in deficit spending would ultimately do to the U.S. economy, and there are legitimate reasons to worry about the unintended consequences of a debt-fueled experiment. But in the near term, don’t be surprised if all that spending continued to juice corporate earnings and the U.S. stock market.
How Will Coronavirus Affect Your Portfolio?
A global pandemic that killed 3% of the Earth’s population only sent markets down 10% over a period of four months.
And let us know what you’re reading at [email protected].
Publisher, American Consequences
With P.J. O’Rourke and the Editorial Staff
February 13, 2020