Happy Birthday Mr. Bull

Bull

Can you believe it has been six years since the end of the financial crisis bear market? March 9, 2009, was a very different time for this world. Since then, the S&P 500 has powered higher by over 200% and unemployment has dropped considerably. This bull is now the fourth longest lasting on record. Naturally one can’t help but wonder, how much longer will this bull continue? Bulls were in control on this anniversary day with the S&P 500 gaining 0.37% to 2,079.

Cannabis stocks started the week off with a mixed tone. Volume continues to be low for most stocks in the space. A sector void of catalysts, plagued with low quality, and still elevated valuations, makes for a tough environment.

Daily Positive: It is easy to throw in the towel when times are tough. However, the ones with true resolve and long term vision are likely to benefit from this amazing sector.

Daily Negative: Many cannabis stocks continue to test lower lows, not a sign of renewed confidence or interest.

The bear market that has ensued since the cannabis bubble’s burst has left many investors with significant losses. Sentiment is depressed and many have left this area. However, the biggest holiday of cannabis is right around the corner. April 20 is a day of celebration for patients, advocates and consumers alike. We wouldn’t be surprised to see renewed interest leading up to this special day, but maybe this time the investors will be comforted by more solid companies in the space. Time will tell.

After all, bubbles can be unnerving, as one is always waiting for it to burst, so we would just be happy to see a healthy market, comprised of solid, revenue-producing companies develop and sustain. Hockey sticks are fun, but stability can be more reassuring for many investors who might want to give the sector another try.

 

The discussion above is provided for informational purposes only and does not constitute an offer of, or solicitation for, any investment services or products offered by the author. The author is not making any investment recommendations and the opinions above do not constitute investment advice. Reference to above indices [and companies] is based on information provided by sources the author believes to be credible. Investing in the cannabis industry, as with other industries, presents certain risks including the risk of loss on an investment.

Morgan is a Founding Partner and Managing Director of Poseidon Asset Management. He is the Chief Investor of their Cannabis Focused Fund. Morgan previously worked for a privately owned Registered Investment Adviser and earlier was at UBS Financial Services focusing on wealth management. Morgan believes in the potential of the cannabis industry and likes having an active involvement as it develops. You can follow him on Twitter @PoseidonAsset.

Related posts

Top