Stansberry Research is the company that sole purpose is to help keep consumers updated on proper investment choices. They are a privately held American publishing company that specializes in investment research in a variety of asset classes. They have a newsletter that they produce with subscribers in over 100 different countries.
They have recently released some research indicating the possibility that there is a melt up in the market today which Stansberry Research considers. A melt up as a. Of time in which the market continues to increase at a rapid pace. As the market continues to increase at this pace more and more, individuals begin to fear missing out on the investment opportunity. However, at some point, the market turns around and begins to decrease in value causing many individuals to lose large sums of money. This can result in many individuals going completely broke by miscalculating their investment potentials.
It is important to keep these facts and minds whenever you are investing. Investing money during a melt up period can be a good use of your resources however you must have a plan to get out of the markets before the meltdown occurs. Stansberry Research believes that currently, stock markets around the world are experiencing a melt up period. In the month of January, the stock market in the United States increased by 6% alone, and stock markets outside of the US boomed for the first time in several years. As the value of stocks continues to increase, investors become more and more excited about the profits they are making causing a cycle of new investors to come in and invest more money further increasing the prices. Stansberry Research stated that this cyclical value of sentiment causes a bull run in nearly every market.
This marks an interesting investment opportunity as it is possible to put your money to work now for significant upside. However, it is very important that you also plan for a shift in the market in order to take your profits whenever the market inevitably experiences a correction. During a melt up stock prices do experience both up and downs in prices marking potential times that are advantageous to buying.