Is January the beginning of the melt-up?

Two things caught my eye over the past couple of days.

1. Bloomberg article outlining that the world is definitely risk-on. The S&P 500 is up 7.5% this month already

Markets are up. Time to go boat hunting.

2. US personal savings rates are down to 2005 levels

Zoom in for a better quality image

Jeremy Grantham noted earlier this month that there are signs the long bull market could be heading into a “melt-up” phase. What is a “melt-up”? According to Investopedia it is:

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 …

Looks like it may have already begun.

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