Monday Monitor and Adjust


Energy continues to spiral downward, putting pressure on U.S. stocks for the day. Additionally, emerging market currencies continue to weaken against the dollar, to the lowest point in a decade. Putin is crying in his borsch. The S&P 500 posted a decline of 0.69% to 2,061.

Cannabis indices are experiencing considerable downward pressure today with MJIC Marijuana Index and Benzinga 420 Marijuana Index declining by 7.85% and 7.05%, respectively. There certainly seems to be a negative bias to cannabis stocks on Mondays and today was no exception.

Daily Positive: Aphria (TSX VENTURE: APH) is a new and good quality Canadian LP, which started trading today.

Daily Negative: Unfortunately, Aphria’s price hasn’t held since the day’s open, showing weakness in this market. We continue to be surprised by the market reaction to quality companies in the sector.

There is a lot of downward activity in the market both in the broader markets and within the cannabis industry. These times can be difficult for those who are actively invested. It isn’t easy to watch the numbers go down and to see red on the screen. However, these are the times where investors with a strategy have to monitor and adjust what their next steps will be in the changing market conditions.


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.

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