By Dr. Steve Sjuggerud
UP BLUEPRINT
In short, before the big “Melt Down” arrives, we have the big Melt Up. It’s the final push higher before the bear market kicks in. 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. Now that was a Melt Up period.
Importantly, the Melt Up typically begins after a time of extreme fear. In late 1998, stocks had fallen dramatically in the wake of the Asian Financial Crisis, and we hit a fear extreme. Then, stocks surprised everyone and soared higher – the Nasdaq rose 200% in 18 months during the dot-com bubble.
5,000
The Nasdaq
In short, before the big “Melt Down” arrives, we have the big Melt Up.
4,500
4,000
200 % gain in 18 months
3,500
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2,500
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Fear Extreme
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American Consequences
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