Economic Outlook
The S&P 500 roared back to life on Tuesday led by Apple, Inc. after the U.S. Trade Representative released a long list of exemptions from the new 10% tariffs on an additional $300 billion in Chinese imports set to go into effect on Sept. 1. Tariffs on the exempted items do not go into effect until Dec. 15.
Exempted Items
The USTR said cell phones and other electronic devices, including laptops, video game consoles and computer monitors, are also exempt until December. Certain articles of clothing and most footwear is also clear for another four months. Tariffs will be delayed for certain chemicals, household glassware and silverware, microwaves, jewelry, and sporting equipment as well….CLICK for complete article
Over the last few weeks, we had discussed the excessive deviation to the market above the 200-dma, which suggested that a reversal of that extension was probable. The question now is whether Tom’s view is correct?
Are the markets set up for “monster second-half rally,” or is this just the continuation of the topping process that began last year.
While these are certainly reasons to be “hopeful” that stocks will continue to rise into the future, “hope”has rarely been a fruitful investment strategy longer term. Therefore, let’s analyze each of the arguments from both perspectives to eliminate “confirmation bias.”
Economic Growth To Improve
No matter where you look as of late, economic growth has been pretty dismal. However, there is always hope for improvement that could support a recovery in asset prices….CLICK for complete article
This week for the cannabis industry will be a busy one, as a number of companies are scheduled to post financial results for the last quarter.
Here’s a brief overview of the companies to be keeping an eye on.
On Monday, Greenlane Holdings Inc (NASDAQ: GNLN), Village Farms International Inc(NASDAQ: VFF) and Medipharm Labs Corp (OTC: MEDIF) will be reporting their financial results after the closing bell.
On Tuesday after the market close, we will see results from Tilray Inc (NASDAQ: TLRY). Analysts expect Tilray to report a net loss of 25 cents per share on revenue of $41.11 million. Earnings results are also expected from….CLICK for complete article
Friday was an interesting day for CannTrust Holding to say the least. Initially, the stock was down as a result of a press release that said its auditors, KPMG, were pulling their most recent reports in light of the scandal surrounding the company and after CannTrust itself cautioned against relying on the most recent financials, including the year-end results.
It’s a move that made sense by KPMG and that, predictably, led to the stock declining to as low as $2.68 on the day. What wasn’t predictable was what happened later in the day.
Not only did CannTrust reverse those losses toward the end of the day, but it would also hit as high as $4.57 — a price not seen since early July, when the stock was in the midst of a large sell-off, which happened soon after investors learned of the illegal growing scandal.
With movement like that, you might have expected some big (positive) news from Health Canada — some major development related to the scandal that all of a sudden changed the trajectory for the company. However, that wasn’t the case.
There was no press release, nothing to indicate there was any news-related item that led to the big surge in share price. There also wasn’t some broader development in the industry or in the markets as a whole that likely led to CannTrust suddenly becoming a more attractive investment….CLICK for complete article
as more and more three letter organizations declare Canada’s real estate prices unsustainable, Canada’s national housing agency thinks things are getting better. The Canada Mortgage and Housing Corporation (CMHC) latest report mentions improved fundamentals. The organization even went so far as to downgrade the risk in Greater Vancouver.
About The Ratings
The ratings are displayed in a color-coded scale, not unlike the US terror threat advisory scale. Green means there’s a low risk of vulnerability, that is the CMHC doesn’t see an issue. Yellow means a “moderate” risk of vulnerability, meaning it’s just breached a risky reading. Red means a “high” degree of vulnerability, and there’s a major imbalance or it’s persisted for a while. It’s pretty self explanatory when looking at individual readings….CLICK for complete article
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