Volatility continued today as U.S. equities fluctuated around the unchanged line for much of the day. Consumer spending came in much weaker than reported, while incomes rose. As a result, the U.S. consumer’s savings rate jumped higher in December. Our economy relies on consumption, however, we see savings as a more durable consumer in the long run. The S&P 500 rallied into the close with a gain of 1.20% to 2,019.
Cannabis stocks started out the first trading day of the month with optimism. Are cannabis bulls returning to the space? The early gains eased a bit as more red filled the ticker list as the day wore on. On the day, the space managed to hold a bullish sentiment.
Daily Positive: Several Canadian Licensed Producers had a decent bid as the U.S. dollar eased off of recent highs versus the Canadian dollar.
Daily Negative: Businesses fail, which is difficult for those involved, but it is also a healthy part of capitalism. When we see a company suddenly start “expanding” into many segments before its core business has yet to get off the ground, we take pause. The recent actions out of mCig may indicate that its core business may not be doing well.
Politicians can get raked over the coals for their relationship to cannabis, often from activities in their youth. Let’s all be honest here. Most people have tried many things at least once in their life. Cigarettes are linked directly to disease and death and many people have tried them or have had brief or lasting habits. Alcohol is linked to countless issues, both physical and emotional, and has noted impacts on society. Many politicians have been notoriously heavy handed with the sauce.
Why is cannabis such an issue for politicians? Let’s dissect this idea here for a moment. What exactly is the problem with having used or currently using cannabis? We wouldn’t want the president or any government official to be making any decisions while on any substances. To be clear, this includes alcohol or prescription medication that impacts alertness or mental clarity. We do think that politicians should be honest about their relationship to substances, including cannabis. This might open up a more honest dialogue about how people who are leaders in society have used or still use cannabis and are also functioning and constructive people in the world. Yes, the fact that it is federally illegal is a concern, but this could be one path to a more constructive process, if the people in the federal government share their experiences.