U.S. equities went mostly sideways after a massive two day rally. We are heading into year-end, holiday season, which means waning market participation. The S&P 500 managed a decent gain of 0.47% to 2,071.
Is this an oversold bounce or is the tide finally turning in the cannabis space? Investor interest seems to be hanging around again today, albeit not to the same degree as yesterday. The Canadian LPs are showing buyer interest with several companies moving nicely higher. Both indices managed to post a positive gain with MJIC Marijuana Index rising by 0.96% and Benzinga 420 Marijuana Index by 2.07%. This is the first day we’ve seen both indices move together this way in a while.
Daily Positive: It is nice to see some increased volume, especially on a Friday.
The drop in oil prices has many implications in the current global economies. For one, it is an effective tax cut for consumers. However, there is potential economic impact to countries and even states within the U.S. Texas could be heading for a recession, according to an economist at JP Morgan.
This is a great reminder of the power of diversification. The Texas economy has benefited tremendously from the focus on energy, yet now they face a serious downside. This shows that diversification can be beneficial in both portfolio management and in economies as well. Maybe the Texas cannabis initiatives will get a serious look as a way to mitigate the state’s economic impacts from energy collapse.