Follow these when you start Investing in Marijuana
Keep this in mind: doing research and becoming informed, is one of your best benefits, in knowing when crazy buy offs, will happen!
Tip #1: Natural Politic, al Swing
There are many market, political, and legal factors at work, but it is still viable to make a realistic prediction about where this industry is headed, up.
The second that you think you have it figured out is likely the one where you’ll have the rug pulled out from under you. So remember that this industry is indeed highly speculative, which means that it can be risky for uninformed investors.
This industry is highly speculative. It just is. No one knows what its ceiling may be, if it has a ceiling, or which stocks will perform will and which won’t. No matter what your experience and expertise in the field.
Tip #2: There is a Green Rush
Watch out for scams. The gold rush was a period in history rife with fool’s gold and all manner of scams and fraudulent claims. That can be the trouble with speculative industries like this, which is why you should keep a keen eye out for any potential scams.
Don’t believe us? Look at what FINRA, the Financial Industry Regulatory Agency, warned about last year.
The press release: “The con artists behind marijuana stock scams may try to entice investors with optimistic and potentially false and misleading information that in turn creates unwarranted demand for shares of small, thinly traded companies that often have little or no history of financial success.”
Tip #3: This is a Long Term Investment
Keep your allocations small. If there is a lot of potential in these stocks and in this industry, you should have no problem allocating a small portion of your portfolio to marijuana investments. This mitigates your risk while also giving you the potential to get a great return on your investment; in essence, it’s the best of both worlds.
Yes, if you bet big, you always stand to win big, but that doesn’t mean that betting big is always the best strategy. If that were true, anyone could have success at the casino.
Tip #4: Vested Investments Show Trends
Don’t put all of your eggs in one basket. Although it’s enticing to invest in this industry, that doesn’t mean that any one particular stock will do it for you. It can be helpful to spread your investment across a few different stocks—you never know which stock will be the one to surprise you. If you do your investment research right, you should notice that more than one stock strikes you as one with good potential.
You don’t necessarily have to pick between them! You can spread your investments around, just as you do in constructing your own financial and investment portfolio.
Tip #5: MORE is on the Horizon
Don’t forget about Canada! With all of the hubbub about marijuana legalization and decriminalization in the United States, it’s easy to forget that there are plenty of Canadian companies worth considering.
Keep in mind that Canadian laws may become less restrictive in the future, particularly to medical marijuana, and that there are many legitimate businesses that may play a part in this business environment. Ignoring the Canadian presence of marijuana companies while focusing exclusively on the United States may be a strategy for your ultimate investment decision, but it shouldn’t be how you go about researching the industry.
Watching the Industry in 2014
So what’s next? Where should you look to see how the industry develops? Which companies share the industry’s destiny?
You can start by learning what are considered the “hottest” marijuana stocks. InvestorPlace.com has a good guide for the hottest marijuana stocks on the market, as does Marketwatch and the Motley Fool.
Together, these stocks certainly should occupy the main portion of your list of the “who’s who” to watch. In addition to watching the Marijuana Index, watching these stocks will do a lot to educate you about the expanding world of marijuana and its place in the worldwide market.
Don’t make the mistake of dismissing these marijuana stocks as part of a fad. With two states—and now Washington D.C.—decriminalizing marijuana, there may only be room for improvement. Many states still have their laws on the books, but the shift in attitude is certainly one to pay attention to. This is not a fad that should be relegated to mere “2014” thoughts. No, marijuana may have a larger part to play in the economy of 2015, 2016, and beyond.
What else is Weird about this Industry?
Is investing in marijuana for you? That might depend on you. Are you the sort of investor who, in the 1840s, might have struck out west because of the promises of gold? Many people made it rich because of the gold rush; many weren’t so lucky.
Marijuana is not the same as gold. And 2014 is not the same as 1848. But the similarities should intrigue you. They should entice you at least to take a look at the Marijuana Index, the hot stocks mentioned here, and wonder: does marijuana have a place in your portfolio? If it does, it’s time to get to work—the sooner you enter this industry, the better your stocks may perform.
New Coronavirus Stimulus Package
If US President Donald Trump would have his way, the new coronavirus stimulus package would include incentives to support Americans who want to go back to work. Previously approved stimulus packages provided extra money for the unemployed, and Trump and the rest of the Republican Party want it the other way.
Related Article: Investment Banks Share Their Stock Market Hot Picks
Trump Wants Work Incentives Included in Next Stimulus Bill, Not Additional Unemployment Insurance
In an interview with the Fox Business Network yesterday, the President remarked: “We want to create a very great incentive to work. So, we’re working on that and I’m sure we’ll all come together.” He noted that the recent stimulus packages created a disincentive for people to return to work. Republicans have argued that supplemental unemployment benefits encourage workers to stay at home instead of looking for a job. The GOP prefers benefits to go to workers returning to work.
Reps: It’s About Getting Americans Back to Work
During the interview, the President was adamant that Americans are raring to get back to work.
“It was an incentive, not to go to work. You’d make more money if you don’t go to work – that’s not what the country is all about…and people didn’t want that. They wanted to go to work, but it didn’t make sense because they make more money if they didn’t.”
Trump’s remarks gave a preview to what’s in store in Congress when hearings resume later this month to deliberate on the next stimulus package. Most likely, the Republicans will oppose any efforts made by Dems to renew the enhanced unemployment insurance, a provision that provides an additional $600 to unemployed workers, and is set to expire by July 31.
Senate Majority Leader Mitch McConnell (R-Ky) termed the supplement a “bonus not to go back to work.” The Kentucky senator has already vowed that the unemployment benefit included in the previous CARES Act in March won’t be included in the next phase of the coronavirus stimulus package, which is targeted for ratification by end of the month.
But that doesn’t mean that unemployment will not be addressed. McConnell clarified that
“Unemployment is extremely important. And we need to make sure, for those who are not able to recover their jobs, unemployment is adequate…that is a different issue from whether we ought to pay people a bonus not to go back to work. And so I think that was a mistake…and we’re hearing it all over the country that it’s made it harder actually to get people back to work. But to have the basic protections of unemployment insurance is extremely important and should be continued.”
Republicans have instead favored back-to-work bonuses instead of additional unemployment benefits. Senator Rob Portman (R-OH) proposes giving Americans who return to work a $450 weekly bonus, while Representative Kevin Brady (R-TX), has proposed giving returning workers a one-time $1,200 payment.
Dems: Extend the Unemployment Insurance, but With Some Conditions
On the other side, while Democrats are pushing to extend the enhanced unemployment benefits, they did so with some form of control in place. For starters, the program will phase itself out once the state reports a lowering of unemployment rates to a certain threshold. This gives the benefit an end that is synced with a change in economic conditions, a marked improvement compared to the ongoing provision that features an arbitrary end date.
Senate Minority Leader Chuck Schumer (D-NY), who introduced the bill with Senate Finance Committee member Ron Wyden(D-Or), said cutting off the benefit can potentially mean that “millions of American families will have their legs cut out from underneath them at the worst possible time — in the middle of a pandemic when unemployment is higher than it’s been since the Great Depression.”
The Dem’s proposed legislation would extend unemployment insurance through March but would lower its amount depending on how well the economy recovers, especially with unemployment numbers. It would be cut by $100 for every percentage point the jobless rates fall below 11%, and will phase out when it slides below 6%.
So, Which Is Which?
With deliberations set to begin as soon as both Houses resume work on July 20, there is pressure to have something in place prior to July 31 expiration of CARES Act. Fortunately, there seems to be a large common ground where both Republicans and Democrats can coexist. With cases of coronavirus spiking again and in higher numbers, some of the larger states have begun holding back on their plans to reopen their economy. A continued stimulus package would help the majority of Americans to deal with this unique global phenomenon, and may yet again help boost the economy like it did the last time. As to what extent the support will turn out to be, Congress has its work cut out for its players.
Watch Trump’s talk about the new coronavirus stimulus package:
Outside of party lines, do you agree with the complete removal of additional unemployment benefits and instead reward Americans who went back to work instead? Or, do you prefer additional support for the unemployed?
Trump Says Economy ‘Roaring Back’ in June As 4.8 Million Jobs Added
The economy added back 4.8 million jobs last month, according to the government’s June jobs report released yesterday. That handily beat the 3.7 million jobs forecasted by economists and dropped the unemployment rate down to 11.1%.
After the report was released, President Trump said the economy was “extremely strong” and “roaring back” after the country has regained more than 7.5 million jobs in the last two months. Trump added that the economy will keep growing unless voters elected Democrat Joe Biden in November. He said Biden would raise taxes and hurt the economy and the stock market would “drop down to nothing.”
Of the jobs added back in June, bars and restaurants hired – or rehired – 1.48 million workers. This comes as many reopened for outdoor dining in the early phases of the reopening. They brought back a similar number of workers in May. It happened after shedding more than 6 million jobs due to the pandemic.
The retail sector regained 740,000 jobs, healthcare added back 358,000 workers, and manufacturing saw 356,000 jobs added.
The energy sector continues to be battered by low oil prices amidst the economic slowdown. Additionally, that industry shed an additional 10,000 jobs last month.
The return of lower-paying jobs like those found in the restaurant and hospitality industry dragged down the average hourly wages for the second straight month.
Many are cautioning against reading too much into reports like average hourly wages while the economy is in such turmoil.
Stephen Stanley, chief economist of Amherst Pierpont Securities, says, “The wage figures will be pretty much useless for a long while until the labor market gets back to some semblance of normality.”
Andrew Chamberlain, chief economist of the job site Glassdoor, also gave an explanation. He added, “Today’s positive jobs report does provide a powerful signal of how swiftly U.S. job growth can bounce back and how rapidly businesses can reopen once the nation finally brings the coronavirus under control — a reason for optimism in coming months.”
Unfortunately for many of the workers recently rehired to work in bars and restaurants, the recent spike in new coronavirus cases could lead to those jobs quickly being lost for a second time. Bars in many states are being shut down again in an effort to curb the growing number of cases.
The unemployment rate fell for the second straight month. However, the Bureau of Labor Statistics is trying to fix a reporting error that, if corrected, would increase the unemployment rate by 1%.
The problem is how households respond to the monthly survey that is used to calculate the unemployment rate. The jobless rate would have been 1 point higher if not for continued problems in how respondents answer the question about their employment status.
What many consider the “real” unemployment rate, which is the U6 rate, includes workers who can only find part-time jobs. It also includes those who’ve become too discouraged to look for jobs because so few are available. Using that measurement, the unemployment rate stands at 18% in June, down from 21.2% in May.
Trump Favors Larger Stimulus Checks, Says ‘Tremendous’ Market Crash if Biden Wins
In a wide-ranging interview with Fox Business News, President Trump mentioned his support for another round of stimulus checks and says should Joe Biden win the election in November, we should expect the stock market to crash “a tremendous amount.”
On Stimulus Checks
Speaking with Blake Burman, the president says he is in favor of another round of stimulus checks, but wants to make sure that there is a financial incentive for Americans to return to work.
“I support it, but it has to be done properly. I support actually larger numbers than the Democrats, but it’s got to be done properly. We had something where it gave you a disincentive to work last time. And it was still money going to people, and helping people, so I was all for that. But we want to create a very great incentive to work.”
Trump also mentioned he wants the checks to arrive quickly and spent quickly, without the Democrats adding complications.
“I want the money getting to people to be larger so they can spend it, I want the money to get there quickly and in a non-complicated fashion. And they wanted to make it too complicated, also it was an incentive not to go to work,” said Trump.
Returning to work is what hard-working Americans are looking forward to, says Trump, and he wants there to be a financial incentive to do so.
“You’d make more money if you don’t go to work. That’s not what the country is all about. And people didn’t want that. They wanted to go to work but it didn’t make sense because they make more money if they didn’t… we want people to get out and we want to create a tremendous incentive for people to want to go back to work.”
On Biden and Taxes
When asked about Joe Biden’s recently announced plans to raise corporate taxes if he becomes President, Trump said “You’re going to crash the market. 401(k)s will be down the tubes, the wealth of the country will be down.”
He added “That will kill the market. It will kill everything we are doing, it will kill jobs, and it will be very bad. Frankly, the stock market is doing well, but it’s an overhang. If he got elected, and they say this, that’s an overhang over the market, because the market would crash. Would absolutely crash.”
When asked what he means by crash, Trump responded, “Markets would go down by tremendous amounts. He’d raise taxes, he’d raise regulations. Look, one of the biggest things I’ve done is I’ve cut regulations more than any President in history. We still have regulations, but they’re much less. His people, the people around him (Biden) are radical left. They’re going to raise taxes, they’re going to raise regulations, and they’re going to put everyone out of business. It would be a disaster.”
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