You Really Want to Own U.S. Stocks Now

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 got 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,


A 2023 Prediction Unlike Any Other You've Seen [sponsor]
Bill Bonner went to law school with Fed Chair Jerome Powell... Co-authored 3 New York Times Best-sellers... And is one of America's most successful entrepreneurs. Bonner's made 3 big macro-economic predictions in his 40-year career, all of which came true. Now he's issuing his 4th and Final Warning. 2023 could be a difficult year for you and your money. See Bonner's warning and 4 recommended steps here...

Source: Daily Wealth