'Melt-up' coinage could signal last hurrah for US stock market

Jeremy Grantham, who dodged the dotcom bubble and US housing crash, now predicts a euphoric ‘melt-up’ before inevitable thud

Welcome to the world of “melt-up”, a phrase we could be hearing a lot in coming months. It describes the idea that the US stock market, despite currently looking absurdly expensive by traditional yardsticks, could be set for one last euphoric hurrah before the inevitable crash happens.

There are a couple of reasons why the “melt-up” theory may not be as wacky as it sounds. First, it comes from Jeremy Grantham, an investor who has rightly earned a reputation for knowing how to read financial bubbles. He dodged the end-of-the-century dotcom bubble and the 2007-09 blowup in the US housing market – two of the best calls anybody could have made in the past 20 years.

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from US news | The Guardian http://ift.tt/2lUJ4vK