Black Friday is known for its ability to bring the crazy out of people and this year was no different! Read about the evolution of these console launches and how diehard video gamers spent Thanksgiving sleeping in a parking lot for the CHANCE to purchase either a Sony Playstation 5 or Microsoft Xbox Series X/S.
Let's be honest, as we approach the end of the year it is totally ok to admit how terrible it has been.
A global pandemic, a nearly year long lockdown and a deep recession to go with it, 2020 is definitely a year I will be happy to see end next month.
Global marijuana stocks are expected to reach $63.5 billion by 2024, meaning that if you aren't already considering investing in cannabis, now might be an optimal time—particularly because people have never been more in need of the stress-relief that this product can provide.
Before investing, if you're a total beginner, you'll need to start building your investment portfolio. Apps like Robinhood can help you buy, sell, and monitor stocks in minutes, while sites like Vanguard provide more comprehensive options. Then you'll want to set aside an investment budget, which will look different for everyone. In general, you'll want to invest around 10 percent or less of your portfolio into individual stocks.
Here are five steps you need to take in order to invest successfully in the cannabis industry.
Understand the different types of marijuana stocks you can invest in
There are two main types of marijuana stocks you can invest in: medical and recreational. In the United States, medical marijuana is legal in 33 states and can be prescribed by doctors. CBD is one of the more popular types of medical marijuana and has been proven to be an effective way of combating epilepsy, as well as several other rare diseases.
The other, riskier option is to go ahead and invest in recreational marijuana. 11 U.S. states have legalized recreational marijuana, but it's been legal in Canada since 2018.
Decide what type of product you want to invest in
If you're going to invest in marijuana, you have three main options. You might invest in a cannabis grower and retailer, such as Canopy Growth; you might invest in a cannabis biotech company like GW Pharmaceuticals, which focuses on developing cannabinoid drugs; or you might choose to invest in a company that creates products for cannabis growers.
Do your research on your company of choice
Now that you know a bit more about how to go about investing, it's time to do your research. Companies that can grow cannabis for a lower cost will be more competitive, and companies with international connections can be more reliable. It's also important to examine whether the company you're investing in is growing sustainably. Scroll through reports from the past few years to see which companies are strongest and most promising.
Money Done Right suggests that you break your research down into two parts:
- Fundamental analysis (which focuses on key information like quarterly profits and income)
- Technical analysis (which focuses on price performance and stock price patterns; this takes more effort and might require some outside help)
4. Know the risks
Cannabis is definitely a volatile industry. It remains federally illegal in the U.S., and though the industry is expanding, initial stocks have performed shakily. You may want to consider investing in medical marijuana products first before leaping into the recreational sphere.
5. Try out these companies
Despite the risks, some cannabis companies have performed better than others. Some of the best-reviewed marijuana stocks in April 2020 were:
This is a real estate investment trust that focuses on the medical cannabis industry. "A high-pedigree management team and strong business fundamentals helped IIPR raise $250 million in January despite the tight market," said Michael Underhill of Capital Investments in Wisconsin. "The stock's more than 25% year-to-date increase compares favorably to the -15% return of the North America Marijuana Index."
This company operates in 12 states in the U.S., and it's America's only cannabis producer that works in the medical, recreational, cultivation, processing, and dispensary sectors. It has a "reported third quarter pro forma revenue of $129 million and adjusted EBITDA of $9 million."
This Canadian-based investment group is dominating the international medical marijuana market. With a cash balance of CA$1.47 billion at the end of the third quarter, Cronos is growing fast.
Canopy reported a $2.07 billion in cash equivalents in January. Plus, they now have a license to grow hemp in New York and have launched a massive cultivation facility. They also launched First & Free, an online company that sells hemp and CBD products, and they've partnered with Martha Stewart to sell their products.
Tilray is another great option in the CBD sphere. The company acquired Manitoba Harvest, a stock worth $419 million Canadian dollars, in February 2019, allowing the company to spread its hemp distribution capabilities around the world.
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- The best CBD beauty supplements available online! - Find Karma ›
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At a time filled with so much uncertainty, it is critical to remember the following mantra: DO NOT PANIC! DO NOT PANIC! DO NOT PANIC!
Say it with me, one more time. DO. NOT. PANIC.
The last few weeks have been nothing short of chaotic due to the outbreak of the novel coronavirus (COVID-19) which has swept the globe, infecting over 108,000 people with more than 3,400 deaths. Currently, with more than 500 confirmed cases and 22 deaths in the United States we have moved past containment and have been told to be prepared for disruption to our daily routine.
What does this mean?
It is possible you may have to work from home, and in the event you are exposed to the virus, feel sick or are near someone exhibiting signs of illness, be prepared to self-isolate for up to 14 days. This means having enough food and supplies on hand to cover every member of your household in the event you can't leave. Here is a short list of items to give you an idea of what you should have in case of an emergency or quarantine:
- Bottled Water (1 gallon per person for each day you plan to be quarantined)
- Anti-Bacterial Hand Soap
- Medical Supplies (contact lenses, contact solution, hearing aid batteries)
- First Aid Kit (bandages, disinfectant)
- Prescription Medication (30 day supply) plus any OTC (over the counter) meds you might need like Advil, Tylenol etc.
- Canned Foods (meat, vegetables, in liquid that can be used for cooking)
- Cereal, Rice, Beans, Oats (oatmeal, grains)
- Chocolate or some type of alternate sweet (studies show the importance on maintaining optimal mental health)
- Latex gloves, N95 face masks (respirators)
You can also follow the latest news regarding Coronavirus in New York state here.
Why does this seem so bad?
Lack of preparation, transparency from the CDC, clear direction from the government, and a President who fails to inspire confidence in the American people has caused panic across the country in the form of unnecessary hoarding of household supplies like toilet paper and bottled water, xenophobic discrimination and hate crimes against people of Asian descent. It has also rocked the global financial markets as traders desperately seek answers and a bottom to the rout.
By 10pm EST yesterday, it was clear that the world was in for another rough week. U.S. Stock market futures were down near 5% overnight which triggered a halt in trading. Over the years, certain measures were put in place designed to prevent panic from tanking equities markets and give investors time to digest the latest market news. Historically, it has worked exactly as intended and is a critical tool in times of great volatility. The Dow Jones Industrial Average (DJIA) was down 1,200 points in pre-market trading and global markets were in a free-fall for the rest of the night.
And then the market opened......
For the first time since 1997 trading was halted on the New York Stock Exchange this morning for 15 minutes following a 7% drop in the S&P 500. The Dow Jones Industrial Average (DJIA) was also down over 1,900 points when the 'circuit' was broken. Designed to prevent a free fall in equities, 3 "circuit breakers" were put in place in the event certain benchmarks were hit, the first of which occurred at 9:35am EST (only 4 minutes after the opening bell!). Trading resumed at 9:49am. If stocks continue to fall and hit a 13% drop for the day, another 15 minute pause will take place. In the event that stocks retreat more than 20%, the market would be closed for the rest of the day.
Oil War For the Ages??
More bad news originating from last week's failed OPEC+ alliance meeting sent oil prices plummeting as a price war broke out in Riyadh. Saudi Arabia has announced a massive price cut for their oil, while sources claim they plan to simultaneously increase production to more than 10,000,000 barrels per day with the possibility of exceeding 12,000,000 barrels on some days. This "Shock & Awe" tactic is a desperate attempt by the Saudi's to increase marketshare worldwide. In response, Russia has indicated they will also increase their production to maximum levels. And the price war has begun.
The last time a price war this serious broke out was during the first Gulf War in 1991. As of the opening bell this morning, the price of a barrel of oil dropped more than 30% ($27).
What does this mean for the west?
Quite possibly the end of the U.S. Shale market, for starters. With the price of oil below $30 a barrel, oil wells in West Texas are now operating at a loss.
Since 2014 the price of oil has been subject to wild volatility as the west became one of the largest exporters of shale oil in the world and price manipulation out of Saudi Arabia saw the price of oil drop from $100/barrel to less than $40. Despite a few brief periods of upswings, it still has not returned to normal levels and is showing no signs of recovery.
It is important to remind yourself that things will get better. Do not panic. Life will get better, the world will come to its senses and you just have to give it time.
Hang in there.