How Melt Ups Begin

Over the last few weeks, the market has started to feel different. What began as cautious buying is now turning into broad participation, momentum, and confidence returning to the market. This is what investors often call a “melt up” phase.

As a student of market history, one thing I’ve noticed over and over is that some of the greatest investors didn’t make their biggest returns during the calm periods. They made them during these powerful momentum phases when markets suddenly shifted from fear and hesitation into aggressive buying.

There have actually been several periods throughout history where the market just seemed to go into overdrive. They usually start slowly, with people still cautious, and then suddenly money starts pouring back in, momentum builds, and stocks just keep climbing higher than most people expect.

A few big examples:

• The late 1990s dot-com boom (1995–2000)

  Probably the most famous melt up. Internet stocks went absolutely crazy. Companies tied to tech and the internet were soaring almost daily. At first people thought the move was overdone… then it just kept going.

  
  

• The post-COVID rally (2020–2021)

  After the pandemic crash, markets came roaring back. Massive liquidity, stimulus, retail traders jumping in, AI, software, EVs… it became one of the fastest rebounds ever. A lot of people stayed waiting for another pullback that never really came.

  
  

• The 1980s bull market into 1987

  After a rough inflationary period in the 70s, confidence came back hard. Stocks climbed for years and the final stretch became very momentum driven before the 1987 crash.

• 
  

What’s interesting is melt ups usually don’t start when everyone feels great. They often begin when people are still nervous, sitting in cash, waiting for “the perfect entry.” Then the market keeps climbing and eventually people start chasing because they don’t want to miss it.

If you’ve been feeling unsure about how to position yourself in this type of market environment, or simply want another set of eyes on your portfolio, I’m happy to offer a complimentary one-on-one consultation. Sometimes all it takes is a conversation to help bring clarity, opportunity, and a game plan moving forward.