The stock market is about to have a 'final melt-up

There's one last run in the market left.Stocks could get a huge boost as investors worry about missing gains, according to Michael Hartnett, the chief investment strategist at Bank of America Merrill Lynch.According to a note from Hartnett entitled "The Final Melt Up", the shift of investors from defensive stocks (think industrials and telecoms) to more cyclical companies (retail, tech, and consumer goods) showsthat investors' appetite for risk is growing.This will create demand for stocks and drive the market upwards."Likelihood of melt up in riskassets into Jackson Hole growing...likely followed by jump in yields," he wrote.The chart below illustrates the rotation thatHartnettis noticing:Essentially, a melt-up by definition is a sudden leap in the market caused byinvestors rushingin because they fear missing out. It's not a sign of improved fundamentals.In other words, these companies and markets may not have higher earnings or be stronger investment opportunities.Hartnett doesn't into the details of the end of the melt up, but with the Federal Reserve Chair Janet Yellen set to speak at the Jackson Hole conference at the end of the month, that appears to be the catalyst that will stop the stampede.SEE ALSO:The only way to fix the economy might be for the stock market to 'collapse'Join the conversation about this storyNOW WATCH: This lunch box for adults could change the way you eat
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