Friday Financial Groundhog Day

Groundhog Day

The S&P 500 jumped higher at the open on news from central banks in China and Europe regarding additional stimulus actions. Unfortunately, the market lost most of its ground as stocks faded into the close, but still managed a gain of 0.50% to close at 2,063. This fifth consecutive weekly gain has lured some investors to think it’s like the film Groundhog Day, where they watch similar chart trends, week after week.

In the world of repeating patterns, the cannabis indices showed little action yet again with MJIC Marijuana Index down 1.9% and Benzinga 420 Marijuana Index flat.

Daily Positive: Looks like the pump and dump crowd is out of ammo for now.

Daily Negative: Lousy Friday trading volume. The volume is so low today it is like we are standing alone in an empty room.

In good news for the medical side, Reps. Earl Blumenauer, D-Ore., and Dana Rohrabacher, R-Calif., are working with 10 bipartisan cosponsors, aiming to “lift a ban on VA doctors giving opinions or recommendations about medical marijuana to veterans.” There are many indications that medical marijuana is helpful in working with people such as veterans who deal with PTSD.

We have been big believers in the ability for access to medical marijuana for veterans and are glad to see the political winds blowing in this direction. Many times it feels that investing and “doing good” are on opposite ends of the spectrum, but in this industry, investing can lead to growth of capital and improvements in society.

 

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.

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