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Right now is the perfect time to go back to basics. Time to learn more about technical analysis, fundamental analysis, and other investment techniques. It does not matter if you are new to investing or are a CPA or CFA …. The basics to investing successfully apply to everyone.
Consider subscribing to blogs because there is a currently a lack of coverage by institutions. One such blog that I have found insightful is “The Weekly Weed Report” at www.setyourstop.ca. Whether you are interested in the specific companies covered or not, this blog is a great way to learn a lot about the industry as well as valuable Technical and Fundamental techniques at no cost to yourself from someone who clearly understands both of these approaches and you can also learn what specific charts are being used. Participate in CANNAIVESTOR webinars and make use of free websites such as www.barchart.com (Technical Analysis). If you find that you do need to seek out advice, ensure you are going to an accredited advisor who has a fiduciary duty to you.
What forward looking information can you trust? There are as many predictions that November and December will represent a “correction” or sell off in this sector as there are that there will be phenomenal returns as risk averse investors start to invest where ballot measures were successful. Those that predict a short-lived sell off are relying on the old “buy on mystery and sell on history”. But let’s look at the 2016 greater economic predictions made within the first few months of 2016 – minimum of four rate hikes, oil at or below $20 a barrel, collapse of China’s economy, and so forth. How many came true? All you can do is monitor your portfolio and the industry frequently and adapt as needed. USA Today recently reported that since 1960 the stock market has averaged a 12.2% ROI with a Republican President and an 11.8% ROI with a Democratic President. Food for thought because the worst-case scenario for this industry is an improvement over the “status” quo with any ballot measures that pass as that translates into expanded jurisdictions for medical and/or recreational use bolstered by a relaxing of the Schedule 1 confinements and the watershed ruling by the Appeal Court in August. Would I have written this article any different and would my approach be any different had I written this after November 8th and after the report by the Canadian task force? Absolutely not and that is the point. November and December may by turbulent. For myself, what started off as tremendous uncertainty about how to possibly write this article before November 8 and before the Canadian Task Force’s recommendations quickly transformed into a moment to reflect, step back, and get back to basics.
Although Cannabis is a New Industry, Technical Analysis, Fundamental Analysis, and Other Investment Techniques Still Work