The REAL Last Great Buying Opportunity of the Melt Up
Editor's note: If you've watched the talking heads on CNBC this week, you probably think our colleague Steve Sjuggerud's "Melt Up" thesis is a bust.
But regular readers – the ones who read what we publish every day and tune out the market "noise" – know that's not the case at all.
In fact, Steve is thrilled about the recent pullback. As he explains in today's Masters Series – excerpted from the most recent issue of True Wealth – it's offering investors a fantastic buying opportunity today...
The REAL Last Great Buying Opportunity of the Melt Up
A mania is about to hit America...
The stock market is about to soar to heights you never imagined possible.
If you thought the dot-com mania in 1999 or last year's bitcoin mania was intense, what's coming next could be even crazier.
At the peak, everywhere you go, you'll hear people talking about stocks. Cab drivers, your barber, your in-laws... It's going to be nuts.
You might think you've already missed your chance to get in. Stocks have been going up for years.
But my friend, you are in luck... An amazing buying opportunity just reared its head.
Honestly, I didn't think you'd get another buying opportunity this good. But thanks to the recent dip in the market, you just did...
Back in April, my True Wealth headline was "The Last Great Buying Opportunity of the 'Melt Up.'"
As I always say, you want to buy when investors are scared – and back then, investors were about as scared of the markets as they'd ever been. Fund managers were running for the exits. And stock prices bottomed out in April around their lows for this year.
What happened after that big scare? The S&P 500 Index rose 13% in less than six months.
I thought you might never see a moment as good as April to get in cheap. Yet here we are...
The stock market kicked off October with a tumble. As I'll explain, it wasn't a big tumble by history's standards... But it still scared the bejesus out of most individual investors.
My good friend Jason Goepfert is one of the best in the world at tracking investor sentiment through his website, SentimenTrader.com. According to him, you have to go back to February 2016 to find a moment when the "dumb money" was more scared than it was on October 12.
And after that February 2016 extreme, stocks soared 14% in about two months.
Today's buying opportunity is like February 2016, or like April this year... But I expect the end result will be much more extraordinary.
I urge you to take advantage of it. Don't follow the crowd on this one. What's happening now is – quite possibly – the REAL last great buying opportunity of the Melt Up.
Today, I hope to show you why now might be your last great opportunity... how stocks can go much higher from here... and what to do.
Let's get started...
Don't Be the Dumb Money: Use Investor Fears to Your Advantage
How quickly individual investors forget... that stocks go up and down.
The famous Dow Jones Industrial Average stock index hit a new all-time high on October 3. A week later, on October 10, the Dow fell more than 800 points. It fell another 500 points the next day. All in all, we had a nearly 1,400-point decline (or a 5%-plus fall) in just two days.
I get it – that scared folks. But you've got to understand something...
Volatility is part of a Melt Up in stocks. You can't have one without the other. You need to expect big ups – and big downs (even bigger than we just experienced) – in the coming months.
This should make intuitive sense...
After all, a Melt Up is the final blow-off top of a long-term bull market. It's the glorious, unadulterated boom before the next bust arrives. For this to happen, by definition, prices have to move – a lot.
Here's another way to think of it...
If a market has the potential to jump 100% in a year, then of course it can fall 10% along the way. That's simply how Melt Ups work. It's the nature of what's going on right now.
Don't just take my word for it, though... Let me show you.
In the final 12 months of the dot-com boom, the Nasdaq fell by roughly 10% or more – five separate times. Take a look...
As you can see, the last Melt Up was not a one-way move higher.
And the 10% falls happened quickly – just like the fall we saw last week. They all took place in a month or less. But at the time, they were still painful. At 10%-plus, they each reached the level of a full-blown correction – even worse than the move we saw last week.
Once investors get used to a one-way market, they forget that stocks go down as well as up.
If you were invested back in 1999, all five of these moves would have made you question whether staying long stocks was the right choice. But today, nobody remembers any of it.
The way most folks talk about the dot-com boom now, you'd think stocks did nothing but soar the entire time...
The Nasdaq more than doubled during the final 12 months of that boom. That's the part everyone remembers.
So I don't want you to get scared out of the market today... and miss out on potentially life-changing gains.
The reality is, pullbacks and corrections are normal... even during a blow-off top. And if today's Melt Up plays out anything like the last great Melt Up, then we could see as many as five corrections – worse than what we just went through – before the market peaks.
So yes, we've seen a terrible couple of days... And no, you don't have to like it. But a pullback in stocks does not signal the end of the Melt Up.
In fact, this kind of volatility is giving us a great opportunity to buy today. It's the reason stocks could soar triple digits from here.
But this isn't the only big issue that folks seem to have with my Melt Up prediction. Many of them raise another big objection, over and over again. Tomorrow, I'll tell you all about it...
Good investing,
Steve Sjuggerud
Editor's note: Earlier this week, Steve hosted the biggest event in Stansberry Research history. Tens of thousands of you tuned in for this historic night. But if you missed it, you're in luck... Until Sunday night, you can watch a replay of this event – and learn how to claim thousands of dollars' worth of Steve's premium research for a tiny fraction of the price – by clicking here.