“Old Hippies and Politicians”
“I am a retired pharmacist. Making magic mushrooms legal is an idea that old hippies and politicians think is a good idea.
“When a politician speaks there are always two messages: the one that sounds good (ex. covid relief) and two, real pork payouts for themselves and their equally greedy and crooked cohorts.
“For close to 80 years, politicians made hemp illegal mostly because it threatened the elite’s cash cows. And being a cousin to MJ made it easy. (CBD oil is useful. THC is dangerous, in my opinion.) Now John Boehner is capitalizing — and doing just fine — so are lots of others.
“The scariest words ever from the government: ‘We’re here to help you.’”
For those not familiar, former pot opponent — and speaker of the house — John Boehner is on the board of directors at U.S. cannabis company Acreage Holdings. If Canadian company Canopy Growth completes its convoluted acquisition of Acreage, Boehner will become a very rich man.
One more pass at politicians: we read this morning that President Biden is taking a wait-and-see approach to Gov. Cuomo’s impeachment. We’ll see…
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Your Rundown for Monday, Mar. 15, 2021…
Tech Doldrums… What’s Next?
“Tech stocks have been gut-punched since the middle of February,” says quantitative analyst Jonas Elmerraji. “All told, the big, tech-heavy Nasdaq Composite Index was down more than 10.5% heading into the start of last week.
“Here’s the good news — the data point to more upside ahead for the tech sector.
“Double-digit declines in the Nasdaq are actually pretty rare,” says Jonas. “Since the Nasdaq Composite Index launched back in 1971, we’ve seen 26 instances where the index sold off 10% or more. And historically, those dips have been spectacular buying opportunities.
“On average, the Nasdaq Composite winds up 17.9% higher 180 trading sessions after crossing the 10% drawdown point.
“Here’s what that looks like on a chart…
“There are a couple of important takeaways from the performance chart above,” Jonas notes. “First, it takes a little while for stocks to find their footing following a 10% drop in the Nasdaq.
“Typically, the index has retested those lows before kicking off its big rally. That means we could see a few more weeks of churn before Mr. Market starts to show a stronger buy signal.
“Second, from about the 50-day mark, the uptrend has tended to be pretty incredible,” says Jonas. “That bodes well for a mid-second-quarter rally in the tech sector.”
His takeaway? “On balance, even accounting for the worst years, the strategy of buying the Nasdaq during 10% drawdowns and holding for the next year has been a major net winner.”
Market Rundown for Monday, Mar. 15, 2021
S&P 500 futures are in limbo at 3,932.
Oil’s down 38 cents to $65.24 for a barrel of West Texas Intermediate.
Gold is up $8.90 to $1,728.60 per ounce.
Bitcoin is down almost 7% to $55,902.30.
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Have a great day, and we’ll talk more Wednesday.
For the Rundown,