Featured Article

The Collapse of Pot Stocks: Refreshingly, Not COVID-19’s Fault

Posted by Wolf Richter, Wolf Street

on Wednesday, 11 March 2020 12:07

Hard to feel sorry for victims of these hilariously obvious pump-and-dump schemes, but they sure got their pockets cleaned out.

There are plenty of questions surrounding cannabis – including whether or not it should be legal, and how it should be regulated and taxed. But there is no question surrounding “cannabis stocks”: They’re phenomenal pump-and-dump operations. And now is the dump-phase.

These are companies with barely any sales, generating huge losses. They were hyped endlessly by vocal promoters and by Wall Street which got rich off the IPO fees. The media oohed and aahed over the meteoric rise of their stocks and their market capitalization which skyrocketed into the many…click for full article.

European Bank Stocks Collapse to March 2009 & 1988 Levels

Posted by Nick Corbishley, Wolf Street

on Tuesday, 10 March 2020 12:31

Just how much lower can they go? To Zero. And the ECB’s negative interest rates are driving them closer to it.

Over the past three weeks, stocks in Europe have plunged by 22.5%, their worst decline since the collapse of Lehman Brothers. The sell-off has been across the board but the worst of it has been reserved for the banking sector, whose shares have been relentlessly crushed and re-crushed for 13 years.

On Monday, the Stoxx 600 Banks index, which covers major European banks, plunged 13%. Today, after a knee-jerk bounce-back that then fizzled, the index closed essentially flat, back where it had been in March 2009. It has collapsed in a nearly straight line by…Click for full article.

Is gold the answer to Monday’s market troubles?

Posted by Anna Golubova

on Monday, 9 March 2020 10:11

Analysts double down on metal’s safety allure

(Kitco News) Analysts are doubling down on their comments that gold’s safe-haven appeal is the winning asset amid growing coronavirus fears, an oil-price crash and an equity market correction.

Goldman Sachs kicked things off last week when it said that gold “is immune to the virus.”

“While so much about the current environment remains unclear, there’s one thing that isn’t: gold, which—unlike…Click for full article.

Goofy of the Week

Posted by Michael Campbell

on Sunday, 8 March 2020 7:58

The Teddy Awards, which have some people thinking that government couldn’t waste more of our tax dollars if they tried….maybe they are.

Mike’s Editorial – March 7th

Posted by Michael Campbell

on Saturday, 7 March 2020 11:08

Many cheered when billions in capital investment and potential government revenue left Canada.  How does that look now in the face of the potential financial fallout of the novel corona virus because it won’t be the last financial shock.