Wednesday Wins

Wednesday Wins

U.S. equities mostly moved higher today after last night’s elections. The S&P 500 continues to set new record highs, 36th of the year, to close up 0.54% to 2023.

Cannabis indices experienced a sell the news hangover today with many stocks selling off today. MJIC Marijuana Index and Benzinga 420 Marijuana Index decreased by 7% and 8% respectively.

Daily Positive: Strength has emerged in the Canadian medical marijuana companies after a detailed and positive research report was released on Tweed Marijuana Inc. (TWD.V). Tweed surged over 17% for the day.

Daily Negative: Cannabis investors saw a sea of red this morning as selling was broad-based and aggressive following the run up to elections. Elections were a major catalyst, but this event has passed and investors are looking to the next actionable event.

Last night was an historic night with major wins in Alaska, Oregon, D.C., as well as with local initiatives such as legalization in South Portland, Maine.

Kudos to those who got out and voted! The elections yesterday are a great movement forward for the cannabis industry. It will take some time for the states to roll out their policies to become effective, but the people have showed that the cannabis wave is difficult to contain. Even in Florida, the voter turnout in favor of Amendment 2 was 58%. This is a clear demonstration that even with a heavily funded anti-cannabis campaign, there is great interest.


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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