Divergent Markets Thursday
Today, investors received the first look at the US GDP for the 3rd quarter, a key measurement of the U.S. economy. The headline number came in at a 3.5% annualized growth, which follows a nicely positive 2nd quarter of 4.6%. That is solid back-to-back quarterly growth for the America. Equities shrugged off morning weakness and marched higher. The S&P 500 closed the day up 0.6% to 1995 which is just about 1.2% away from record highs.
Daily Positive: It seems that the press is back on the marijuana investing train, taking a positive tone with the potential, which is a good thing.
Daily Negative: However, we are concerned by their lack of research and reporting in terms of what they are recommending and urge investors to continue to do their due diligence into companies, even if they are featured in major media outlets. As we have said before, “friends don’t let friends by pink sheets.”
From an international market standpoint, some interesting happenings have been occurring. Uruguay’s pro-cannabis president has stepped out of the running and many wonder what will happen with his pro-cannabis policies.
However, we are seeing progress in Chile, where they are allowing the cultivation of medical marijuana for treating such illnesses and conditions as cancer and epilepsy. From an investor’s point of view, it is difficult to keep up with U.S. policy on marijuana, but it is also worthwhile to understand it and to have awareness of its global developments.