Did you mean: define stock market melt up
When I read this it reminds me a lot of the "Tech Bubble"
The dot-com bubble in the United States
The
dot-com bubble was a historic economic bubble and period of excessive
speculation that occurred roughly from 1997 to 2001, a period of extreme
growth in the usage and adaptation of the Internet by businesses and
consumers. Wikipedia
Period: 1995 – 2001
This was when people invested in dot coms like crazy and many or most lost their shirt by investing at the wrong times in the wrong stocks. However, I'm a long term investor and I prefer Blue Chip Stocks to minimize risk and maximize profit. Younger investors often lose their shirts by being too aggressive and not watching the fundamentals of what they are doing. We have friends who weren't careful also and lost 70,000 dollars to almost 700,000 of their retirement income by being too aggressive as investors and not watching what was happening every day by being day traders like this.
This is why long term investors who likely will ride this out are mostly into blue chips and tax free municipal bonds. However, the danger of tax free muni bonds is cities or municipalities who are too aggressively invested right now which could lead those cities and municipalities to bankruptcy. This then has a chain reaction that can affect muni bond holders in those states by losing both interest and principal.
So, the last 17 years it has become dangerous in muni- bonds unlike the great Depression when muni bonds were the single safest investment then. So, if you invest in muni-bonds in your state be sure if you do this to that your muni bonds are insured with Treasury bonds so you don't lose your principal.
This should protect you from principal loss so even though you might lose interest you won't lose principal.
The problem right now as I see it is that if you invest at the top of the market (you don't know always when you have hit the top of the market) you are only going to lose (at least for months or years) a part or parts of your initial investment before it recovers to where you invested.
begin quote from:
Melt Up - Investopedia
www.investopedia.com/terms/m/melt-up.asp
DEFINITION of 'Melt Up'
A dramatic and unexpected improvement in the investment performance of
an asset class driven partly by a stampede of investors who don't want
to miss out on its rise rather than by fundamental improvements in the
economy.
Market Melt-Up - What Does It Mean? - Dave Manuel
https://www.davemanuel.com/investor-dictionary/market-melt-up/
What is the definition of a market melt-up? What do market melt-ups occur? ... Definition of a term - Market Melt-Up - Finance -- In a "market meltdown", major ...
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What is Melt Up? definition and meaning - InvestorWords.com
www.investorwords.com/18355/melt_up.html
Definition of melt up: A dramatic upturn of certain stocks occurring when investors unexpectedly purchase these stocks and drive their price up without...
Market 'melt-up' could push stocks to new records, Yardeni says
https://www.cnbc.com/.../market-melt-up-could-push-stocks-to-new-records-yardeni-s...
... So, I don't know what is driving earnings," said Shiller
melt up
Definition
A dramatic upturn of certain stocks occurring when investors unexpectedly purchase these stocks and drive their price up without any specific reason, logic or improvement in economic conditions. A melt up reflects a mass mentality where it appears that investors do not want to miss out on making a possible profit. This is usually followed by a meltdown.
