The 'Melt Up' Just Went Global

Editor's note: The "Melt Up" in U.S. stocks is underway.

Yesterday, in the first half of an exclusive two-part interview for our weekend Masters Series, Steve Sjuggerud discussed how much higher the bull market can go – and for how long... why it's not a "buy anything" market... and how to position yourself for when the Melt Up ends.

In today's Masters Series – the conclusion of the interview – Steve explains why the Melt Up just went global...

The 'Melt Up' Just Went Global
An interview with Steve Sjuggerud, editor, True Wealth Systems

Sam Latter: In the last issue of True Wealth Systems, you said the Melt Up has gone global. What do you mean by that?

Steve Sjuggerud: Well, the Melt Up was always a U.S.-centric idea. While stocks around the world have risen since the 2009 bottom, the U.S. has been the big winner.

Our bull market has been the strongest in the world over that time. So the Melt Up focused on the U.S., figuring out how we could make the most profits in the final leg of the U.S. bull market.

But what's interesting is that this year, we've started to see the bigger gains happening outside of the U.S.

In my True Wealth Systems service, we made a recommendation outside of the U.S. last November, and we made two more non-U.S. recommendations in January.

We're still in those trades, which, earlier this week were up 35%, 25%, and 17%. And we aren't talking about risky individual stocks here. We're talking about funds that track entire stock markets.

I wasn't thinking about a global Melt Up when I recommended those trades. But they're up big.

Remember earlier how I told you that during the last Melt Up, the Nasdaq soared more than 200% while the S&P 500 rose about 50%?

Sam: Right. Tech stocks essentially "decoupled" from the rest of the market.

Steve: Exactly. When tech stocks started to outperform, it signaled the start of the Melt Up in the U.S. Well, right now, the same thing is happening overseas.

For years, these international stocks had been tracking their "parent" index... like a single sector tracking an entire market.

This year, the parent index is up about 20%. That's great. But these specific stocks have soared around 40%. They've DOUBLED the performance of their parent index... and started to decouple.

This is a group of exciting, high-growth companies... the exact kind of businesses you would expect to soar during a Melt Up scenario.

Again, I can't give you the full details today. But this is yet another sign that the Melt Up has gone global.

And the upside in this specific group of stocks is huge. I wouldn't be surprised if they jumped another 100% or 200% over the next year.

Sam: Wow, that's great. It's obvious there's a real opportunity for investors to make huge gains in the market today. But before I let you go, I have to ask you one question we get all of the time.

We read the feedback, and lots of folks think that between you and Porter, Stansberry Research is talking out of both sides of its mouth. He has been warning about a bear market while you've been bullish for several years, dating back to the start of what you called the "Bernanke Asset Bubble" back in 2010. What do you say to those skeptics?

Steve: I completely understand where these folks are coming from. But as I've said for years, Porter and I agree about the eventual outcome. We just disagree on the timeline.

Obviously, Porter does fantastic work. He has done a great job digging deep into issues that nobody else notices.

I mean, he called the collapse of General Motors and Fannie Mae and Freddie Mac. I'm not sure anyone else can claim that. And he has seen major issues with U.S. auto- and student-loan debt for years.

I don't disagree with him. The U.S. has a major debt problem. And it will likely cause serious problems in the coming years, as Porter has warned readers about many times.

But I've continued to stay bullish on stocks for two reasons. One, the Fed has continued to keep interest rates low, and two, the trend has continued to move higher. As long as these two things are in place, I'm not selling... even though I know the eventual crash could be devastating.

We simply have to ride this bull market as long as possible... and pocket the biggest gains possible. And like I mentioned yesterday, we'll use stop losses to protect our downside when Porter's thesis is proven right.

I don't know when the eventual collapse will happen. But as long as the trend is up, my advice is to stay invested.

Sam: Thanks for taking the time to speak with us, Steve.

Steve: My pleasure.

Editor's note: On Thursday night, Steve and Porter hosted a free event where they discussed everything you need to know to profit from the Melt Up... including one actionable recommendation you can use to start making money right away. If you missed it, you can watch a replay right here for an extremely limited time.