Canadian CANNAINVESTOR Magazine October 2018 | Page 197

monies flowing into the cannabis sector and more to come. Big deals are being announced. Big banks getting in on the action. And big things to come, we hope.

The list of companies to invest in is only going to get bigger. Possibly, unless there is consolidation (my colleague Louis Kyron has discussed the consolidation curve for years now). But check out our top 25 list later on in the magazine, along with our other lists, including ETFs, and you’ll notice our Stocks To Watch list getting bigger and bigger. With legalization on the horizon, many have a FOMO (Fear Of Missing Out). Well starting your investment portfolio now may bring sleepless nights, given how volatile things have been. And being a “new” industry, there really is no telling how things will shape up six months, a year, or 5 years from now. Jumping in head first is not the best idea and studying the copious amount of companies out there to invest in takes a considerable amount of time.

Which way are things going to go? I urge you to read James West Midas Letter article written a few days ago. He paints the picture of three different scenarios (Bear, Bull, and ummmmm Neutral). Interestingly, the conclusion is all have merit, which I truly believe. Nobody seems to know. If we did, we’d all be billionaires, or maybe just thousandaires, if that’s a word. But again, I stress the point of being in a little bit of an abyss when it comes to legalization. Generally speaking as well, not just in the cannabis market, there are few things to consider. This is the sixth longest bull market in the modern era, but interest rates are rising. On September 26th, the Federal Reserve raised interests rates AGAIN, third time this year in the United States. Looking ahead to 2019, officials have signaled that at least three more are coming (and Canada typically follows). And as rates rise, and deficits risings even more, it could cause capital markets to tighten, with banks getting stingy on loans. Which of course, impacts on companies that must pay down loans at higher rates, WHICH they’ve borrowed freely when rates were reasonable and much easier to pay down. Oh, and we have mid-term elections coming up in the US. Which as we have expected over the years, have a dramatic impact on Canada. It is no secret that since Donald Trump was elected, these markets have skyrocketed. With mid-terms coming up, there has been speculation that this could be the biggest crash we’ve ever seen if he isn’t re-elected. Not to mention Free-Trade, which has been hanging in relative limbo for quite some time, which could impact on jobs, and inflation, among other things. Buzz yes, but real buzz.

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