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The 'Melt Up' Is Here – Investor Optimism Hits a 17-Year HighBy
Friday, April 7, 2017
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
Further Reading:
"We're in the late stages of a great bull market. But the biggest gains tend to happen in this final stage," Steve explains. Recently, a rare string of "up" days supported his "Melt Up" thesis. Based on history, this move could mean stocks are headed higher – before their eventual peak. Learn more here: What's Next for Stocks After 12 Straight Up Days.
"I got worried about valuations... And I missed out on the fantastic performance of stocks during the final innings of the stock market boom." Steve remembers the mistake he made in the late 1990s... and explains why now is not the time to sit on the sidelines. Read more here: Dow 20,000 – Don't Chicken Out!
Market NotesA 'GLOBAL ELITE' AGRICULTURE GIANT REBOUNDS Today's chart highlights a leader in its industry...
Monsanto (MON) is a $51 billion global agriculture giant. The controversial company produces seeds and develops chemicals to help farmers control weeds and insects. It was also one of the first companies to develop genetically modified organisms ("GMOs").
Like it or hate it, Monsanto is one of the stock market's ultimate "food plays." Its products massively increase crop yields. In countries where farmland is starved for nutrients and water, Monsanto seeds are an attractive choice. The company also has strong profit margins and free cash flows. Porter and his team call these kinds of businesses the "Global Elite" – financial powerhouses that dominate their markets with indispensable products.
In December 2015, Porter's team recommended the stock in Stansberry's Investment Advisory. Back then, Monsanto shares were cheap... It was a great opportunity to buy one of the Global Elite at a low price. Now, shares are trading at fresh 52-week highs. Readers who followed Porter's advice are sitting on nearly 20% gains. Congratulations to Porter on another great pick...
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