Oil’s selling pressure continued today, which spilled over to broader equity markets. Tonight kicks off earnings season with Alcoa. It wouldn’t be surprising to see the recent elevated volatility persist through the pinnacle of earnings releases in the coming weeks. The S&P 500 declined by 0.82% to 2,028.
Cannabis stocks were mostly unchanged on the day, even though individual stocks varied quite a bit on a percentage basis. Participation was light today. The MJIC Marijuana Index moved higher by 1.3%, while Benzinga 420 Marijuana Index ticked up 0.4%.
Daily Positive: Last night, CBS aired “The Marijuana Effect,” a story from 60 Minutes on the cannabis industry after Colorado’s first year of legalization. It was a well balanced look at the industry. We are happy to see a lack of run up to or sell-off after the show.
Daily Negative: Illinois’ MMJ program is heading for no man’s land, thanks to poor leadership. It is so sad to see patients continuing to suffer and capital destroyed all because politicians fail to keep their promises. It’s highly doubtful the state will return any funds paid by applicants.
We love hemp! Not the penny stock, the plant. We love it for so many reasons and it seems to be the overlooked cousin of the medical and adult use marijuana. We are very happy to see that more research will be conducted on this magical plant and the fibers it produces. According to the Chicago Tribune, universities in Illinois are now allowed to start researching and understanding the industrial fibers and applications.
There is so much to know about the use of hemp and we don’t want to see investors confused by companies misrepresenting themselves as hemp companies. There are few out there who are already working with hemp and who are doing so on any major level, so be sure not to just take a company claiming to work in hemp at face value.
Right now, the majority of our hemp is sourced from Canada, China and Europe. South Africa is starting to research the plant and so are other countries. We are excited for the potential of this wildly overlooked plant and can’t wait to see the jobs it will create and the more sustainable farming methods it will require. For more on hemp, read an interview Poseidon Asset Management did with Doug Fine, one of the leaders of the movement; his book could change your life.