Violence is striking around the world and the markets are showing red in kind. U.S. stocks moved downward as energy continued the drag. Concerns are being raised over Europe’s stimulus plan and American wages fell, which added to the lowering sentiment. The S&P 500 fell 0.83% to 2,045.
Cannabis stocks ended the week on a mixed note. We are pleased to see better volumes and capital flowing to better names. The MJIC Marijuana Index declined by 1.6% and Benzinga 420 Marijuana Index was mostly unchanged.
Daily Positive: This year is off to a more realistic start, as not every company’s valuations are exploding higher at unsustainable rates.
Daily Negative: As we’ve mentioned, don’t always take information on the internet as fact. Another company came out today stating that third party promotional activities were not authorized by the company. This is both destructive and confusing to the market. Ask questions. Test, verify and review. Do your homework!
One thing that is undeniable about the expanding cannabis industry is the wealth that legalized states are enjoying through their tax revenues. Small states that have been suffering economically, such as Rhode Island, are starting to open up to the possibility of cannabis. The success of Colorado’s first year, coupled with the fact that the sky didn’t fall, is likely to give politicians a good arsenal to go pro-cannabis.
Rhode Island is the perfect example of a state that would benefit from this type of tax revenue. I know very well, having lived there for several years, that there are schools and state programs that would benefit from the funding. Gov. Gina Raimondo has started the conversation and the MPP has been incredible in jumping in on this to make it easy for constituents to express themselves. Don’t forget, when investing in cannabis, politics is our business.