First a quick summary year to date. The recent (last 30 days) pullback has negatively impacted almost everyone. The markets have almost entered a ‘correction’ period (drop of 10% or more) since September 21st. Many sectors have dropped more than 10% over that time. The SP500 (US broad based index) has fallen over 9.34% at end of day yesterday and was well below 10% during the day.
The following chart shows sample returns for various levels of fixed income and equity. To repeat…there have been few safe havens with even fixed income (investment grade bonds) showing negative returns year to date.
Benchmark comprised of:
Fixed income =TD Bond fund
Equity allocation=50% XIU & 50% XAW
Next we will get into some specifics so we might as well start with what many have been talking about…Cannabis. It is now legal so what happens to the stocks since it is legal? Well they have corrected significantly.
The following chart is the ETF (exchange traded fund that includes many of the cannabis stocks). The ETF reached an all-time high in mid-October and has since fallen 33% (during today) only to bounce back during the day BUT is still off 25% from its high.
IF YOU HAVE NEVER OWNED CANNABIS STOCKS THIS MAY BE A GOOD ENTRY POINT! (fingers crossed)
If you have owned cannabis stocks than your actions (if any) will depend on what you own and original cost. (e-mail or call to discuss
For those with the ability to handle higher levels of risk/volatility I prefer Golden Leaf Holdings. The uncertainty of the Federal government in the United States has been a cloud over many cannabis companies south of the border BUT their valuations are in many cases better than ours. Check out the company by clicking on the name above.
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‘historical analysis does not reflect future returns’