U.S. equities continued to creep higher today extending its recent outperformance over international markets. This performance gap is starting to feel a bit discomforting given the parabolic outperformance of the S&P 500 versus the MSCI EAFE (international benchmark) shown in this chart:
The S&P 500 notched another small gain today to finish up 0.37% to 2031.
Daily Positive: mCig has been working on a S-1 filing to spin out its VitaCig brand for 7 months. Today, the company announced the S-1 has been approved. Investors cheered as the stock rose by 6.68% on strong volume.
OTC stocks are typically development stage companies. Trying to get a business up and running is a challenge all in its own. Managing a public presence adds a layer of complexity, which should be considered before any company goes public.
Getting tangled up in lawsuits is a potential death knell given the distractions from costs, time and the disruption to progress. This generally equates to a capital impairment given the incredible uncertainty and has been reflected in the market today with one name taking a sharp decline. We do not like to see unnecessary drama around a company and consider that a sign to steer clear.