Tuesday Turnaround


Investors in the broad market were pleased to see a turnaround today. Energy stocks showed a rally, overshadowing the fact that Cyber Monday showed lower returns than 2013. In hedge fund news, a record number of funds have closed their doors on continued disappointing returns. Yet, Goldman Sachs is reporting an anticipated growth for the S&P to cross over the 2100 barrier in 2015. Today, the S&P 500 closed up 0.66% to 2,067.

Cannabis indices are continuing to fall with MJIC Marijuana Index and Benzinga 420 Marijuana Index 5.56% and 3.45%, respectively.

Daily Positive: American Cannabis Company (OTCQB: AMMJ) won two licenses in Minnesota. Another sign that this company is quietly working toward success and is far outperforming where the market has been seeing them.

Daily Negative: The Benzinga Index has now turned negative on the year after its stratospheric rise in Q1. The industry has made tremendous progress this year, yet the public market is not reflecting this action.

We are up in Washington state today for another due diligence trip, meeting with some great teams who are overseeing promising projects. It is nice to take a step out of the market and get a hands-on experience with the industry. We know the markets will improve, but taking these trips and meeting face-to-face with the people who are shaping the future of this industry is a good way to stay focused on the big picture.


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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