Welcome to Fantasyland

Melt-up mentality brings back memories of of stock market magic

Source: Disney

It’s wild how quickly memories fade on Wall Street, and how fantasies can overtake reality for a surprisingly long time...

Trying to fight the urge to chase the latest and greatest – no matter how rational the argument against doing so might be – can be brutal. As the never-gets-old saying goes...

The market can remain irrational longer than you can remain solvent.

But here we are, a mere two years after dot-com 2.0, and we’re having the same discussion… again!

This time it’s the artificial intelligence (“AI”) “melt up,” everybody seemingly talking “melt-up,” and the market back to doing what it does best... very likely generating its own form of magic, complete with illusions, sleight-of-hand and skillful misdirection.

There’s no question AI is real, impactful and evolving quickly, but the way its latest iteration has jump-started the market is a “we’ve seen this movie before” moment.

And in a market whose performance is dominated by just a handful of companies, investors se…