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How to Invest in Marijuana: Stocks and Bonds Part 4

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Getting Started with Marijuana Investing

If you see what many people see—a potential gold rush—then you’re narrowing down your investor’s research to one very central question: should you invest or shouldn’t you? That’s exactly what we’ll address in the next few sections.

Should You Invest?

 

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This may be the most central question of them all. Unfortunately, it’s not an easy one to answer. Whether or not you should invest in marijuana stocks depends entirely on your personality as an investor. Are you experienced? Are you inexperienced? Have you done your research and homework on individual marijuana stocks, or are you simply interested in “getting one” so you can be part of the overall gold rush?

You should invest in whatever is safe and legal for you to invest in, so long as you also believe that investment fulfills some part of your overall investment strategy. If marijuana investments add something to your portfolio that you want added, then that’s a great addition. If not, you may want to think twice; sometimes it’s good to even pass up a “good” opportunity in favor of long-term advantages and stable growth.

In the next few sections, we’ll take a closer look at discerning whether or not investing in this field might be right for your portfolio.

Step One: Viability


Take a look at each company’s business model, the same way you’d examine the business model of any other company which you’re considering investing in. Is the company stable? Do you like its numbers, its revenues, its costs, its market share, etc.? Or do you have some concerns?

The key here: Determining the viability of an individual company is no different than determining the viability of any other investment despite what you might think about the field. It’s not enough to say “marijuana stocks will grow.” You have to pick and choose the best investments, the ones that you believe will be stable and growing. If not, you are simply spinning your wheels; you could be likened to a gold prospector who didn’t take the time to properly research what gold mining and panning for gold was all about.

The main lesson here: keep a cool head.

Avoid High-Risk Penny Stocks, and Other Tips for Keeping Your Investment Stable

It’s tempting to look at penny stocks as a potential way to break into a new investment and earn a lot of money. And certainly some people have made a pretty “penny” doing exactly that. However, just because someone has succeeded with a specific strategy does not mean that you will; it may not even mean that the strategy is the best strategy for everyone.

Avoiding the highest risk penny stocks will help you to keep a cool head and examine the investments with a more discerning eye. If you must have a penny stock, choose one that makes sense to you. Don’t simply pick the first one to come across your Google page. Take the time to examine the numbers.

Similarly, remember that your marijuana investments should be part of an overall portfolio. Consider what role they’ll play. If you consider marijuana investments high-risk, then don’t let them take a greater percentage of your portfolio that you’ve set aside for high-risk investments.

Know the Players

In taking on the marijuana industry as a potential choice for investment, you should approach it like any other industry: learn the “who” first.

You saw in the previous section about “Who’s Who” in the marijuana stock market that there are some companies that fetch more attention than others—usually, for good reason. It’s important to have an idea about these things because it will allow you to understand the greater context of the industry and know which “standard-bearers” can serve as a measuring stick for other stocks you might want to pursue.

In taking on the marijuana industry as a potential choice for investment, you should approach it like any other industry: learn the “who” first. Get an idea for some of the top companies, some of which have been mentioned in this very article, and you’ll have a better idea of exactly what is going on in the industry. And as you research some of the lesser-known companies and penny stocks, you’ll know a lot more about the industry as a whole so that you can have the appropriate context for viewing each stock.

How to Track Marijuana Stock Performance

Are you interested in watching the marijuana industry grow before you make any moves? Then it might be a good choice to simply sit back and watch. However, you shouldn’t take this to mean that you should be passive; no, instead take an active role in understanding what’s going on in this particular stock segment.

You can do this by picking some of the stocks you believe will perform the best in the coming months. Many online stock brokers offer automated “stock watcher” options that allow you to track the stocks that have gained your interest. Take full advantage of these features! Watch the news and see how your stocks ‘ value responds to the new. Every day, something new is happening in this industry; it’s important to not only understand the who of the industry, but the when. Getting your timing right is one of the most underrated aspects of investing.

The “Marijuana Index”

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Don’t have the time to look at the individual stocks? You may want to consult the “Marijuana Index.”

This index is not exactly the S&P 500, but it does do a good job of showing you where the marijuana industry is at. If you’re interested in the industry but haven’t looked at individual stocks yet, then you may want to pay particular attention to this ‘index’ and keep up on the latest news as well. Understanding how the “index” reacts to various news events can really help you understand market timing.

It’s in this index that you can identify potential stocks to buy, as well. Doing your research with this index as a baseline or a guide, you’ll be able to identify all sorts of companies that you hadn’t thought of, perhaps even when you were doing your serious research into the industry.

Continue to How to Invest in Marijuana: Cash In Now Part 5>>

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Lifestyle

Top 10 Travel Destinations to the Start the New Decade

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For many, traveling offers an opportunity to disconnect from the everyday and experience new places and cultures. With the beginning of a new decade, it is the perfect time to start deciding your next travel adventures.

When booking your future destinations, consider these spots and tips recommended by travel expert and Bank of America ambassador, Lee Abbamonte, the youngest American to visit every country plus the North and South Poles.

1. Australia

From its deserts to tropical beaches, Australia is a beautiful country to explore. While many people might be familiar with the Sydney Opera House and the unique wildlife, there are many hidden gems in Australia.

“I’ve been to Australia 10 times and I still can’t get enough,” Abbamonte said. “One of my favorite cities is Melbourne. While it’s one of the largest cities in Australia, the heart of the city is hidden and secretive. It comes to life when you visit the alleys, laneways and arcades. The vibrant city has so much to offer: cafes, a unique street culture and street art.”

2. New Zealand

If you are going to New Zealand for the first time, Abbamonte recommends boogie boarding down the sand dunes, hiking up a volcano and visiting the Moeraki Boulders. However, if you are really interested in getting the blood pumping, take a leap from Nevis Bungy near Queenstown. It is among the highest bungy jumping experiences in the world, measuring 440 feet.

3. Mexico

“Mexico City has two of my favorite things – great food and sports,” Abbamonte said. “The street tacos are to die for, and I love going to soccer games at Estadio Azteca.”

In 2020, there will be many festivals to explore. The city is a cultural hub with music, theater, dance and food events throughout the year. While experiencing the festivities, it is also an opportune time to take a step back and enjoy Chapultepec Park.

4. Brazil

One of Abbamonte’s favorite waterfalls is Iguazu Falls located on the border of Brazil and Argentina. While Iguazu Falls might be well known, the falls themselves are truly unique. The waterfall system consists of 275 falls that stretch over approximately 1.68 miles. The Devil’s Throat is the tallest fall with a drop of more than 262 feet.

While traveling internationally can be fun and exhilarating, there are also places throughout the United States that offer memorable activities:

5. Scottsdale, Arizona

If you enjoy being outdoors, Scottsdale is an ideal place to visit. There are many trails to explore in Camelback Mountain, Papago Park and Hole in the Rock. After hiking, follow Abbamonte’s example and golf at The Short Course at Mountain Shadows.

“Scottsdale has some of the most beautiful sunsets in the States, and from The Short Course at Mountain Shadows, I get to enjoy the view while practicing my swing,” he said.

6. Boston, Massachusetts

“I love sports, so I visit Boston regularly for the professional games,” Abbamonte said. “I’m also fortunate that Boston is a beautiful city I can enjoy along the way.”

Boston is one of the oldest cities in the country. Founded in 1630, Boston is filled with history, museums and universities. If you are interested in a more unique attraction, check out the Warren Anatomical Museum, which is one of the last of its kind in the United States.

7. Portland, Oregon

What makes Portland unique are the bizarre and wonderful things you can do when you visit. For example, you can try bone marrow ice cream, stop by Mill Ends Park (the world’s smallest park) or attach your wish to The Wishing Tree.

“Portland is absolutely beautiful,” Abbamonte said. “It has a bit of everything – restaurants, bars, parks – and I enjoy the people watching. Portland has some of the nicest people while maintaining an edgy vibe.”

8. Tampa, Florida

Tampa might be known for its spring break party scene, but it has so much more to offer. For example, the city’s zoos and aquariums provide opportunities to interact directly with animals. Then you can take a break at Clearwater Beach, which is known for its soft, white sand and calm waters.

9. Santa Barbara, California

“I go to Santa Barbara when I want to recharge,” Abbamonte said. “I enjoy the food, walking around, talking to the locals and even watching a football game or two.”

There are wine tours, zoos, beaches, museums and restaurants. While taking in the city, also make time to visit the hidden gems such as Knapp’s Castle ruins.

10. England, Germany, Scotland, Azerbaijan and more

While technically more than one place, these locations have one thing in common: Union of European Football Associations (UEFA) Euro 2020. The international soccer event marks the first time the games will be held across the continent in 12 host cities.

“The year is a big one for sports,” Abbamonte said. “From sporting events in Europe to Japan, it is a fun year for travel and to enjoy once-in-a-lifetime experiences.”

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US Vows 100% Tariffs on French Champagne, Cheese, Handbags Over Digital tax

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Image via Shutterstock
By David Lawder and Andrea Shalal

The US government on Monday said it may slap punitive duties of up to 100 percent on $2.4 billion in imports from France of Champagne, handbags, cheese and other products, after concluding that France’s new digital services tax would harm US tech companies.

The US Trade Representative’s office said its “Section 301” investigation found that the French tax was “inconsistent with prevailing principles of international tax policy, and is unusually burdensome for affected US companies,” including Alphabet Inc’s Google, Facebook, Apple and Amazon.com.

US Trade Representative Robert Lighthizer said the government was exploring whether to open similar investigations into the digital services taxes of Austria, Italy and Turkey.

“The USTR is focused on countering the growing protectionism of EU member states, which unfairly targets US companies,” Lighthizer said. His statement made no mention of proposed digital taxes in Canada or Britain.

The US trade agency said it would collect public comments through Jan. 14 on its proposed tariff list as well as the option of imposing fees or restrictions on French services, with a public hearing scheduled for January 7.

It did not specify an effective date for the proposed 100% duties.

CHAMPAGNE, ROUGE AND GRUYERE

The list targets some products that were spared from 25 percent tariffs imposed by the United States over disputed European Union aircraft subsidies, including sparkling wines, handbags and make-up preparations – products that would hit French luxury goods giant and cosmetics maker L’Oreal hard.

Gruyere cheese, also spared from the USTR aircraft tariffs levied in October, featured prominently in the list of French products targeted for 100 percent duties, along with numerous other cheeses.

The findings won favor from US lawmakers and US tech industry groups, who have long argued that the tax unfairly targets US firms.

“The French digital services tax is unreasonable, protectionist and discriminatory,” Senators Charles Grassley and Ron Wyden, the top Republican and Democrat, respectively, on the Senate Finance Committee, said in a joint statement.

Spokespeople for the French embassy and the European Union delegation in Washington could not immediately be reached for comment.

But prior to the release of the USTR’s report, a French official said that France would dispute the trade agency’s findings, repeating Paris’ contention that the digital tax is not aimed specifically at US technology companies.

“We will not give up on taxation” of digital firms, the official said.

France’s 3 percent levy applies to revenue from digital services earned by firms with more than €25 million ($27.86 million) in French revenue and €750 million (£644 million) worldwide.

The USTR’s report and proposed tariff list follow months of negotiations between French Finance Minister Bruno Le Maire and US Treasury Secretary Steven Mnuchin over a global overhaul of digital tax rules.

The two struck a compromise in August at a G7 summit in France that would refund US firms the difference between the French tax and a new mechanism being drawn up through the Organization for Economic Cooperation and Development.

But Trump never formally endorsed that deal and declined to say whether his French tariff threat was off the table.

Reuters

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Andrew Yang Wants You to Make Money Off Your Data by Making it Your Personal Property

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Andrew Yang, 2020 Democratic presidential candidate, plans to regulate the tech industry by prioritizing in giving people the right to own their personal data (“data as a property right”), thus allowing them to make money by sharing it with companies. Currently, companies entirely own users’ data – users do not have much control over it.

Yang said, “our data is now worth more than oil” and gave emphasis to the great amount of data people create and how companies make money over it. “By implementing measures to increase transparency in the data collection and monetization process, individuals can begin to reclaim ownership of what’s theirs,” he said.

He also cited a report saying that the collection and use of Americans’ personal data has become a $198 billion industry. Yang believes that people should have more control over their data, such as being able to see how their data is being used and having the freedom to opt out if they choose.

Yang added that we need politicians “who understand technology and a modern way to regulate it,” as reported by Engadget. “In order to regulate technology effectively, our government needs to understand it. It’s embarrassing to see the ignorance some members of Congress display when talking about technology, and anyone who watched Congress question Mark Zuckerberg is well aware of this,” said Yang.

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