Doc's note: We've shared news of the coming "Melt Up" event we see ahead in this bull market. Tonight, Steve Sjuggerud is hosting a free event with some of the biggest names in finance. You'll get all the latest details on the Melt Up and the best way to position your portfolio.
But before tonight, we wanted to get to the heart of what it all really means. That's why we interviewed Stansberry Research analyst Brett Eversole. Brett has worked closely with Steve on his Melt Up thesis. And today, he's sharing his view of what lies ahead in the market and how we can profit.
HWB: Brett, let's start with a little about you. How long have you been at Stansberry? What was your background before coming here?
Brett: I've been with Stansberry since 2010. Folks who have been reading since then might remember Tom Dyson. He was the editor of The 12% Letter back then. Tom hired me right out of school to come work with him.
After a few months I made a transition to working with Steve Sjuggerud. He was after a "numbers guy" and my schooling was in mathematics. My degree was in "actuarial science," which is basically applied statistics. Most folks with my background end up working in the insurance industry doing risk pricing.
I never expected to end up working in finance. But a deep math background made the analytics of investments second nature. I also had the good fortune of working alongside Steve, who's a legend in the industry and a great teacher.
HWB: You and Steve have a really exciting project coming up – what is it?
Brett: We've been keeping this a bit under wraps. But we're almost ready to reveal it to the world. We've built an entire portfolio dedicated to profiting in the final stages of this bull market.
Folks around the office think we're a little nuts. The bull market is now the longest in history. Stocks have been rising for nearly a decade. But Steve and I don't think things are done yet. It's actually quite the opposite. We've built a portfolio that we believe will double before the bull market peaks.
Again, I know that sounds crazy. But we believe the biggest and most explosive gains of the bull market could occur over the next 12 to 18 months. And it's possible thanks to an idea that's gaining popularity in the media these days. It's actually pretty funny to see, because Steve coined the term several years back – the "Melt Up."
HWB: What exactly is the "Melt Up"?
Brett: The Melt Up is a powerful idea built on a simple premise… that stocks often have their biggest, most explosive gains at the end of a major bull market.
A lot of people believe tops happen slowly. But history shows that isn't really the case. Instead, we often see an explosive move higher filled with investor euphoria. This never lasts of course. And a major market Melt Down follows.
The most recent major example of this happened at the end of the 1990s bull market. The Nasdaq Composite Index soared more than 86% in 1999 alone. Think about that… 86%, in a year, from a major index. It's crazy. But it's what's possible during a Melt Up.
HWB: That somewhat answers our next question. Where do you see the markets going in the next year – will the bull market keep running that whole time?
Brett: I know it's not conventional wisdom, but yes, I think stocks can move much higher over the next year. I expect the Melt Up to take hold and propel stocks to heights most folks don't believe to be possible. But there's something important to remember…
We likely will see several corrections along the way. During the 1999 Melt Up in the Nasdaq, stocks fell 10%-plus several times. But they came storming back time and time again. The reality is that Melt Up periods lead to huge volatility.
Emotions are what drive the market during a Melt Up. Folks buy because the money seems easy, not because they have a solid investment plan. It's a hype-driven market, and that means big ups and downs are to be expected.
So yes, I expect stocks to soar over the next year or so during the Melt Up. But expect volatility as well.
HWB: If we want to read more and follow you and Steve on the Meltinar and your recommendations, how can we do that?
Brett: Steve is going live with the full details during a free event on October 24 at 8 p.m. This is going to be big. Buck Sexton, the co-host of the Stansberry Investor Hour podcast, will be moderating too.
Steve's going to lay out everything we see right now… What's happening with the Melt Up, why stocks will soar from here, and what you need to do about it. He's even doing something that's a bit out of character for him… He's giving away one of our top recommendations – a company we believe could soar 10 times during the Melt Up.
It's going to be a fun event, and I hope folks plan to tune in. They're going to learn a lot and be set up to make the most money possible during the Melt Up.
HWB: Thanks for joining us today, Brett. And Steve's free Melt Up event happens tonight at 8 p.m. Eastern time.
What We're Reading…
- Something different: Could the news about Sears lead to some gains?
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
October 24, 2018