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FIRE and Fed

Dear Rundown Reader,

A trailblazer of the FIRE movement (without even knowing it) weighs in on potential pitfalls:

“I worked for myself in various small businesses and saved as much as I could while investing some of the savings. I got to where I considered myself “independently” wealthy.

“The economy started going bad in 2008 and my business was slowed way down. I decided I had enough money to retire. I did.

“Since then I found that my savings went a lot faster than expected. And I’ve lived longer than I thought I would. I still own some property and stocks. Although not as much as I used to.

“My point is that I had this FIRE thing going without knowing that’s what it was.

“Then a year ago I had to find a job to get by before I totally depleted my assets. I’m now, very soon to be 67, and don’t see how I can quit working again for another 5-10 years.

“MORAL: Don’t retire too early because you probably don’t have enough to last. I have never lived extravagantly either.”

This next reader’s timely feedback comes on day two of a Federal Reserve meeting (we learn this morning they’ll raise rates in December):

“If the tax cuts aren’t paying for themselves, why are revenues to the government at all time highs?

“The main problem isn’t the tax cuts, it’s overspending by liberals in both parties.

“Another major problem is the Fed raising interest rates since Trump got elected. Let’s remember that every 1% hike is an additional $210 billion a year added to the debt/deficit.

“The truth is the Fed could not be getting away with raising interest rates if not for the stimulative effect of the tax cuts on the economy.

“A crash is coming but it will be caused by the Fed’s overly aggressive actions. The Fed simply doesn’t understand what Trump understands, the only way out of the mess we are in (without a crash) is to cause massive inflation.

“The piper always gets paid!”

We appreciate your feedback.

Your Rundown for Thursday, November 8, 2018

Cannabis Pharma Trailblazer

A welcome turn of events for the U.S. marijuana industry: Attorney General Jeff Sessions resigned yesterday.

Sessions, an outspoken opponent of states’ rights on marijuana legislation, rolled back an Obama-era federal ceasefire on states that had already put legalization to the vote.

Having the U.S. Attorney General gunning for marijuana wasn’t putting anyone at ease, least of all pot investors.

So, on the news, some of the most recognizable names in pot stocks took off:

  • Canopy Growth (CGC) up 8.2%
  • Cronos Group (CRON) up 8.4%
  • Aurora Cannabis (ACB) up 9.2%
  • Tilray Inc. (TLRY) up 31%

To be fair, these stocks are losing some of their gains in early-morning trading. But not all their gains. And Tilray? 31%? That’s bound to be cut down to size.

A stock tangentially associated with the pot industry is GW Pharmaceuticals (GWPH), the first drug maker to get FDA approval for cannabis-based therapy Epidiolex that treats childhood epilepsy.

The drug received approval in late June and hit pharmacy shelves Nov. 1.

chart

The company’s a pacesetter for other pharmaceutical companies in the medical cannabis space; it has a consensus price target of $187.43.

For those still skittish about entering the pot market, this stock might be an easy entry.

Market Rundown for Thurs. November 8, 2018

S&P 500 futures are down 6 points to 2,807.23.

Oil is down 30 cents to $61.38.

Gold’s lost $2.90 to $1,225.80.

Bitcoin, too, is down; it’s lost $25 to $6,504.80.

Have a good day. We’ll talk again tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the Publisher of Seven Figure Publishing. He's been researching and writing about technology and markets for over a decade and is a graduate of Penn State and Johns Hopkins.

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