U.S. markets launched into the first trading day of 2015 on a positive note. However, the rally quickly faded after weaker than anticipated manufacturing data was released. U.S. equities spent the majority of the day working back to the unchanged line. The S&P 500 ended slightly lower by 0.04% to 2,058.
Cannabis stocks enjoyed their first day of 2015 with a majority of the sector rallying. It is not too surprising to see a bounce with tax-loss harvesting behind us. However, we are not supportive of the bounce in many of the low quality names. Rising tides lifted the cannabis boat today as MJIC Marijuana Index and Benzinga 420 Marijuana Index surged higher by 6% and 12.7%, respectively.
Daily Positive: We are excited for the new year, and the economic attributes of cannabis to the U.S. economy. We have elaborated on this below.
Daily Negative: It is the first day of 2015, and it appears many traders are back to the same old habits of moving stocks of little to no value. We’ll just note this and move on.
The first day of the year always sparks with the frisson of possibility and potential. While difficult to predict the future, investors have hopefully learned from the 2014 trading experience. One definition of insanity is to continue doing the same thing and expecting different results. So, as traders in the new year, we have the opportunity to learn from what we’ve experienced and to change our approach moving forward.
With cannabis companies we have learned that there is a fair amount of research and legwork to do on these young companies. While there may be some who will continue with their disappointing actions in the market, everyone is personally responsible for their own behaviors. We will just stay focused on the bigger picture of growing this industry for the future.
An example of this industry growing and progressing is the number of jobs that we see being created, with one report showing this to be north of 200,000 jobs. There are few industries that are tangible and can bring work back to the United States, but the cannabis industry is one such industry! Investing in this space means investing in the future of this country. Check out some of the new career categories that have already been created.