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The danger of a market melt-up
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Shares of companies that are making no profit have been rising faster than those that are deeply profitable due to investors following the herd instinct.
PHOTO:AFP
Jeff Sommer
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Market meltdowns have been a big worry lately, and for good reason. With US President Donald Trump imposing the highest tariffs since the Great Depression and enacting myriad other disruptive policies, the threat of another market crash cannot be ignored.
Yet despite an 18.9 per cent downturn in the S&P 500 earlier in 2025, the stock market has rebounded. In fact, stocks have become expensive again. While the potential for a serious market downturn has not vanished, I think it’s also time to begin thinking about another problem: the danger of a market melt-up.
