The Dramatic Rise and Fall of Cannabis Company Stocks
The unprecedented expansion of cannabis across North America took the investment world by storm, as investors raced to cash in on the “green rush”.
Yet, even as changing regulations unlock new opportunities, it seems as though the cannabis stock bubble has already burst — at least temporarily.
Today’s visualization dives into the roller coaster of cannabis company stock valuations over the past few years, and which companies remain standing in this hazy market.
A Wild Ride for Cannabis Stocks
The North American Marijuana Index tracks the equally-weighted stocks of leading companies operating in the legal cannabis industry in U.S. and Canada. Companies listed on the index must have at least 50% of their business strategy focused on the legal industry, including ancillary operations that support companies and consumers…CLICK for complete article
A record number of energy companies filing for bankruptcy coupled with poor performance by the industry in 2019 has made it incredibly hard to find investments in the energy space that can be considered safe or promising.
The industry’s favorite benchmark, the Energy Select Sector SPDR Fund, which tracks the price and yield performance of companies in the energy sector, has returned just 2.7% compared to the 24.2% produced by the S&P 500 year-to-date, easily one of the biggest laggards in the entire market.
But first, let’s look at some popular energy instruments that have turned quite risky for the average investor.
Snake oil bonds?
Many investors tend to turn to bonds when the stock markets become choppy.
How can we be surprised with actions of the biggest human rights abuser on the planet – China – but we were shocked and appalled by this story. Plus Newsweek throws a log on the “fake news” fire.
Maybe I should retire. It would certainly make some people happy, especially supporters of the status quo power groups but I can’t turn my back on what’s about to happen in the next two years – i.e. massive financial changes.
Slowing gas demand in China is set to pressure international gas prices further, adding to the burden of producers, some of whom already have to deal with excess supply.
Bloomberg quoted a researcher from China’s economic planning authority, who said at a BloombergNEF event in Shanghai that over the next five years, China’s demand for gas will slow down, especially in the liquefied natural gas department. The reasons for the slowdown will be economic: forecasters expect slower GDP growth in the world’s second-largest economy. Not last because of the continued trade war with the United States.
The Power of Siberia launched officially on Monday, with China’s and Russia’s presidents hailing the infrastructure as a cornerstone in bilateral relations. The two have a 30-year contract for gas supplies and these are bound to undermine Chinese LNG demand.
Domestic production will also take a chunk out of that particular gas demand segment as Beijing seeks to reduce its overwhelming reliance on imports. Tariffs on U.S. LNG imports will not help producers either….CLICK for complete article
So much for that trade war deal for Christmas. It’s not happening, and the DOW has shed nearly 400 points since this morning on that holiday sentiment alone. By 12:28pm EST, the DOW had shed over 440 points.
Earlier today in London, Trump dropped a trade war bombshell, saying that a deal isn’t like until 2020, and worse–not until after presidential elections, adding that “In some ways I think it’s better to wait for after the election if you want to know the truth”.
That likely means that Trump has been less than forthcoming about the success of negotiations about a trade deal, and publicly aiming for a deal after elections would suggest that it wasn’t a failure, officially, so might resonate less at the polls.
And “after the elections” is a vague notion, and Trump concedes that he has “no deadline”.
The DOW just took a plunge because the markets had already priced in a trade deal after a verbal agreement between China and the U.S. over a month ago.
And it’s not just the China element that’s dragging down the markets…CLICK for complete article