Happy Halloween Friday


Equity markets cheered on the surprising news coming out of Japan overnight. The big announcement was from the Bank of Japan where Kuroda shocked markets with a surprise easing action. In lieu of candy, we see this as their way of saying Happy Halloween. The S&P 500 closed today at its 35th record high of the year with a gain of 1.17% to 2018.

Once again we saw cannabis indices being slightly divergent. The MJIC Marijuana Index and Benzinga 420 Marijuana Index decreased by 1.23% and increased by 1.61% respectively.

Daily Positive: It is raining in California, which might provide some slight ease to the tremendous drought. Just as we are a political industry, we also must watch and understand weather and energy. Remember much of the California’s agriculture, including cannabis, is grown outdoors.

Daily Negative: It is disappointing to see sub-penny stocks moving up 100% + today. It is a good reminder that this market is comprised of many unsophisticated investors, easily swayed by social media and headlines. For more, check out this great article by The Financial Times.

The elections are next Tuesday, November 4, 2014, so there is still time to prep and understand who the officials are in your state and know the local communities that support cannabis initiatives. If you are having trouble understanding the issues or determining the choices that will move cannabis forward, check in with your state chapters of the NCIA.

For example, in California, we have the CCIA (California Cannabis Industry Association) and its team is extremely helpful when seeking information on elections. Remember, as Sean Donahoe said in his October 2 article from CULTURE Magazine, “If cannabis is your industry, then your business is politics.”


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