Everybody Expects A 1999-Style ‘Melt Up’

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Everybody Expects A 1999-Style ‘Melt Up’

Whitney Tilson’s email to investors discussing that everybody expects a 1999-style ‘melt up’.

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Q3 2020 hedge fund letters, conferences and more

A 1999-Style Melt Up Is Likely

1) My colleague Enrique Abeyta has been pounding the table since March that the market is going higher – and he has been 100% right so far.

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He's also on record saying he thinks a 1999-style "melt up" is likely going forward, and just sent me some fascinating charts about this from The Market Ear, with the following comments:

My view about the coming melt-up is no longer as out-of-consensus as it once was.

I still think it's going to happen... but if you're going to play for a melt-up, you'd better be ready for some volatility and be ready to stick it through. Many stocks could be down 10% before going up 50%.

Thank you, Enrique!

(By the way, our other colleague Berna Barshay agrees with him – noting that "Bullishness is very consensus now. Shorts are weary.")

Here are the seven charts Enrique sent me:

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stock market

stock market

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1999 Style Melt Up

1999 Style Melt Up

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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