Market Call: MegaCap-8's Latest MAMU

We coined the acronym “MAMU” in our May 16, 2013 Morning Briefing. We wrote: “After the widely dreaded ‘fiscal cliff’ scare turned out to be a non-event at the start of 2013, [stock investors] were tired of being anxious that the bull would get tripped by a bear.” We opined: “Perhaps now that investors are no longer fearful that the end is near, all the liquidity pumped into the financial markets by the major central banks over the past four years to avert the Endgame scenario is about to cause the Mother of All Melt-Ups (MAMU).”

The ensuing MAMU ended on February 9, 2020 as the pandemic hit. The next MAMU started soon after on March 23, 2020, when the Fed announced QE4ever, and ended on January 3, 2022, when investors started to conclude that nothing is forever in the stock market. The recent bear market ended on October 12. Now that the latest fiscal cliff has been averted, is another MAMU underway led by stocks that are AI frenzy plays? Maybe.