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1) Furthered the discussion and raised the temperature regarding alleged unfair trading by the USA’s greatest friend and ally - Canada.
2) Support of the legislation that recommends re-scheduling Cannabis in those states that have legalized it so long as the production, consumption, etc are all within state regulations. (CLICK HERE)
3) Support banking rights and privileges to the industry.
(CLICK HERE)
Why is this important? The USA paid promoters who turned their attention North to Canada were typically outflanked because of their lack of familiarity and not having a natural presence in Canada. However, they still did well otherwise they would not have maintained their presence in a foreign country but now that the waters back home appear to be inviting they are likely to return – possibly leaving others to watch over the Canadian arm. New promoters will emerge. Market theory is rooted in part on group psychology. Technical Analysis is using historical behavior and trends to predict future behavior and trends. In other words, the sharks will be back soon sharing the cannabis industry investment waters with countless new and inexperienced investors. But there is another reason … if President Trump either by accident or design causes a trade war with multiple nations, prices necessarily increase – inflation raises its ugly head. If interest rates increase as a result, then existing fixed income investments are losing their relative value. As an obvious example, if you bought a 2% 10-year interest bearing investment one year ago and one year later you could buy a 9-year interest bearing investment at 2.5% which would be worth more to prospective buyer? The 2.5% 9-year one … so the 2% one must sell at a discounted price to ensure both pay an effective return of 2.5%. If rates continue to rise, then this perpetuates. If the investment income is not tax sheltered than the after-tax interest amount could be less than the inflation rate.