The 'Melt Up' Is Officially UnderwayBy Dr. Steve Sjuggerud
The "Melt Up" is undisputedly here. I can prove it simply by showing you two charts. These two charts prove that my thesis for U.S. stocks is moving along according to plan... and that some of the biggest gains of this bull market could still be ahead of us. In short, the Melt Up is here. And that means you really want to own U.S. stocks now. Let me quickly explain why... Before we get too far, let's recall what the Melt Up is... The Melt Up is the final push of a bull market. It's when the leading companies of this near-decadelong boom REALLY take off... and propel the overall market dramatically higher. Importantly, the Melt Up won't necessarily lift all stocks. In fact, the last time around, most stocks didn't soar in the Melt Up. And I believe that could be true this time, too. Of course, the last true stock market Melt Up in the U.S. happened during the tech bubble of the late 1990s. The entire market had soared through the '90s. The old fuddy-duddy companies made huge gains right alongside the exciting new Internet stocks. But that changed as the bull market neared its end and the Melt Up took over. Just take a look at the chart below. It shows the last 12 months of the 1990s bull market... The Dow basically went nowhere for the final 12 months of this stock market Melt Up, while tech stocks soared triple digits. The beginning of that major outperformance is what signaled the Melt Up getting fully underway. And for the first time since the last Melt Up, that's happening right now. That's a big change. Until now, boring stocks and exciting tech stocks had soared together. The rising tide of recent years has lifted all ships. Things have changed in recent months, though. We've seen a major shift in performance. The exciting tech stocks are finally crushing the boring fuddy-duddy businesses. Take a look... This is a first... And it's big news. Since early April, the Nasdaq has dramatically outperformed the Dow. And it has hit new all-time highs along the way. This is exactly what we saw in the late 1990s. It's what signaled the final stages of the Melt Up back then... And it's what happened right before a massive, triple-digit boom in tech stocks in just 12 months. We've been waiting and wondering, but this is our signal. The Melt Up is officially underway. The final stage of this bull market is likely to play out over the next 12 to 18 months as a result. The takeaway is obvious: We want to own U.S. stocks right now. Specifically, we want to own exciting U.S. tech stocks. This isn't a time to be worried about the market. This is the time to be bullish and buy. Don't miss this. Get on board now. Good investing, Steve P.S. I believe that before this historic bull market is over, stocks will soar higher than you can possibly imagine. That's why I've put together a presentation where I explain exactly what steps you need to take right now. Check out this presentation right here. (You won't have to sit through a long video.) INSIDE TODAY'S DailyWealth Premium We have clear signs that the Melt Up is underway. And that means we want to own stocks now. More specifically, we want to own technology stocks... Click here to get immediate access. Market Notes THE WORLD IS GOING CASHLESS Today, we're checking in on one of Steve's favorite trends... All around the world, consumers are abandoning cash and switching to mobile payments. As this trend has gone mainstream, it's becoming even more important to protect users' private information. That's where today's company comes in... Financial-technology leader First Data (FDC) provides solutions to secure and process transactions. The company works with more than 6 million business locations and 4,000 banks across the world to handle payments. And having such a large customer base is paying off... In the most recent quarter, First Data reported net income of $341 million, up 84% from the same quarter in 2017. As you can see in the chart below, FDC shares are soaring. The stock is up more than 75% in the past two years alone. As people continue to switch from cash to mobile payments, this trend is just getting started... |