A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web
The intense volatility of marijuana stocks makes them somewhat analogous to playing Russian roulette with big money for portfolio returns.
There are simply too few options for investors looking to benefit from legalized marijuana, and apparently they have no limit as to how much they are willing to pay for the few stocks in the sector.
FT Alphaville (free to read with registration) wrote about Tilray Inc. Wednesday and this was before the stock price made its massive intraday swoon,
“Tilray is a Nasdaq-listed company which the share price would have us believe was worth more than $14bn, as of Tuesday's close. It isn't, of course. Tilray is a wildly overhyped Canadian cannabis stock which raised $150m in a recent IPO. Any attempt to sell all the shares, or even to dump large amounts of them, we suspect, would cause the valuation to collapse. In the last six months Tilray reported sales of $17m, and losses of $18m.”
“Tilray is nuts. When's the crash?” – FT Alphaville
“Weed is a much bigger business than bitcoin” – Bloomberg
“@TheStalwart This is the craziest number of the day. $5.8 billion shares worth of Tilray have changed hands [Wednesday]. That's more than Amazon, Apple, Netflix, and every single other company” – Twitter
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Merrill Lynch’s chief equity strategist Michael Hartnett declared that “the great bull market is dead,” killed by rising interest rates, high corporate debt levels and slowing economic growth,
“As the Fed and others end asset purchases and gradually raise rates, investors will have to brace for significant changes, Hartnett wrote. In that climate, he advised investors to focus on ‘inequality, innovation and immortality,’ that would benefit pharma companies and technology disruptors, along with inflation plays in commodities, value stocks, and markets outside the U.S. and Canada. ‘The Fed is now in the midst of a tightening cycle, ignoring structural deflation, focusing on cyclical inflation,’ he said. ‘Until this Fed hiking cycle ends we suspect absolute returns from financial assets will remain slim & volatile.’”
“The 'Great Bull' market is 'dead,' and here's what's next, Bank of America predicts” – CNBC
“@Schuldensuehner Tech disruption is deflationary, BofAML says. The supply of robots, artificial intelligence and big data putting downward pressure on the price of labor, goods, services & capital. Aging Demographics and Excess Debt adding to the deflationary pressure.” – (chart) Twitter
“Global growth may have peaked, OECD says” – CNBC
“@georgemagnus1 The 2020 recession has become so consensus now. I don’t disagree given monetary pol lags, fiscal drag, other stuff, but when was the last time a consensus recession call was right? Was there ever even one?” – (link to Bloomberg column included) Twitter
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Deutsche Bank chief international economist Torsten Slok published a research report called “Canada is Important” that consisted entirely of a map showing that Canada is the #1 trading partner for 36 out of 50 U.S. states.
“@LJKawa Torsten Slok, a man who GETS IT Latest report: "Canada Is Important"” – (includes map) Twitter
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Tweet of the Day:
Diversion: “For Valentino Dixon, a wrong righted: With an investigation Golf Digest helped open, an Erie County court vacated Dixon’s murder conviction after he had already served 27 years in jail” – Golf Digest
Scott Barlow