Over the last few weeks, we had discussed the excessive deviation to the market above the 200-dma, which suggested that a reversal of that extension was probable. The question now is whether Tom’s view is correct?
Are the markets set up for “monster second-half rally,” or is this just the continuation of the topping process that began last year.
While these are certainly reasons to be “hopeful” that stocks will continue to rise into the future, “hope”has rarely been a fruitful investment strategy longer term. Therefore, let’s analyze each of the arguments from both perspectives to eliminate “confirmation bias.”
Economic Growth To Improve
No matter where you look as of late, economic growth has been pretty dismal. However, there is always hope for improvement that could support a recovery in asset prices….CLICK for complete article
This week for the cannabis industry will be a busy one, as a number of companies are scheduled to post financial results for the last quarter.
Here’s a brief overview of the companies to be keeping an eye on.
On Monday, Greenlane Holdings Inc (NASDAQ: GNLN), Village Farms International Inc(NASDAQ: VFF) and Medipharm Labs Corp (OTC: MEDIF) will be reporting their financial results after the closing bell.
On Tuesday after the market close, we will see results from Tilray Inc (NASDAQ: TLRY). Analysts expect Tilray to report a net loss of 25 cents per share on revenue of $41.11 million. Earnings results are also expected from….CLICK for complete article
Friday was an interesting day for CannTrust Holding to say the least. Initially, the stock was down as a result of a press release that said its auditors, KPMG, were pulling their most recent reports in light of the scandal surrounding the company and after CannTrust itself cautioned against relying on the most recent financials, including the year-end results.
It’s a move that made sense by KPMG and that, predictably, led to the stock declining to as low as $2.68 on the day. What wasn’t predictable was what happened later in the day.
Not only did CannTrust reverse those losses toward the end of the day, but it would also hit as high as $4.57 — a price not seen since early July, when the stock was in the midst of a large sell-off, which happened soon after investors learned of the illegal growing scandal.
With movement like that, you might have expected some big (positive) news from Health Canada — some major development related to the scandal that all of a sudden changed the trajectory for the company. However, that wasn’t the case.
There was no press release, nothing to indicate there was any news-related item that led to the big surge in share price. There also wasn’t some broader development in the industry or in the markets as a whole that likely led to CannTrust suddenly becoming a more attractive investment….CLICK for complete article
as more and more three letter organizations declare Canada’s real estate prices unsustainable, Canada’s national housing agency thinks things are getting better. The Canada Mortgage and Housing Corporation (CMHC) latest report mentions improved fundamentals. The organization even went so far as to downgrade the risk in Greater Vancouver.
About The Ratings
The ratings are displayed in a color-coded scale, not unlike the US terror threat advisory scale. Green means there’s a low risk of vulnerability, that is the CMHC doesn’t see an issue. Yellow means a “moderate” risk of vulnerability, meaning it’s just breached a risky reading. Red means a “high” degree of vulnerability, and there’s a major imbalance or it’s persisted for a while. It’s pretty self explanatory when looking at individual readings….CLICK for complete article
The US treasury yield curve, as represented by the spread between the 10-year and two-year bond yields, is currently the flattest since December 2018.
As of writing, the spread is seen at 0.097 basis points – down more than 17 basis points from the high of 27.5 basis points seen on July 18.
Notably, the benchmark 10-year yield, which stood at 2% on July 31, fell to 1.59% on Wednesday and is now trading at 1.70%, meaning the yield is down 30 basis points on a month-to-date basis.
Investors have rushed for the safety of government bonds amid escalating US-China trade tensions….CLICK for complete article
China’s recent currency devaluation seems in line with similar policies taking place across the globe. Let’s take a look why Bitcoin price is rising as a result and why investors are increasingly considering taking shelter in Bitcoin — a neutral and borderless network for storing and transferring value — alongside traditional safe haven assets.
Every fiat currency is devaluing itself on purpose.
As the U.S. and other countries attempt to bolster economic growth through rate cuts, investors are beginning to flock to gold, cash, government bonds and increasingly Bitcoin as a hedge, according to economist, Raoul Pal….CLICK for complete article