Marijuana stocks had been on a roll last month. Most companies witnessed robust growth with Canada legalizing cannabis for recreational use. While the stocks were up significantly in the first couple of months this year, largely driven by this speculation, they nosedived in the second half of last month.
Generally, a 20% drop is considered a bear market. However, as cannabis stocks are pretty volatile with wild price swings, this might not be the case yet.
So why did the stocks crash?
The bloodbath witnessed in the last two weeks have been for good reason. The marijuana industry is still at a very nascent stage. With Canada legalizing recreational use, it is now time for these stock to deliver and walk the talk.
The time for promises, as they say, is over. Now, investors will look for tangible sales, revenue growth and improvement in profitability. Profitable growth might still be a distant dream, though investors would like companies to gallop towards this criteria.
Canopy Growth [CGC] for example is a major player in this space. It has an international presence and is listed on the Toronto Stock Exchange. This company has partnered with Constellation Brands [STZ] where the latter has invested $3.8B.
However, Canopy is also spending aggressively on capacity expansion and its international markets might lose money till 2020 as per estimates. Canopy Growth fell 35% in the second half of last month and has recovered 10% in Nov.
Tilray [TLRY] lost close to 46%, while Cronos [CRON] and MariMed [MRMD] also slumped 42%, and 10% respectively.
Are these stocks a safe bet in the long run?
While investing in potentially high growth companies comes with its own set of risks and volatility, one should not forget the mind-boggling growth which the cannabis industry is set to experience. The stock market rewards long-termĀ investors with compounded returns.
In case players want to play it safe and still invest in the cannabis stocks, investing in marijuana ETFs might provide just the right amount of diversification of risk.
I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.
Iām interviewing a tax expert about how real estate investors avoid paying taxesin perpetuityāAND how everyday citizens can do the same thing.
(Real estateāour TEMPLE I and TEMPLE II projects includedāhas a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)
Thereās the 1031 exchange, of course, which Iāve shared with you guys before.
Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREEāas long as said property is worth the same or more.
But thereās ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.
PS: In our next update, Iām going to break down how real estate moguls get paid from their propertiesā¦tax free. š PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.
If thereās anything the pandemic taught us, itās that the paradigm of āofficeā and āworkspaceā has been shaken to its CORE.
Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run fromā¦wherever. š²
This is my office for the dayā¦
I am actually running our business from the beach, typing this from here.
Itās 4:28 pm CET, which means itās 10:28 am EST and I am CRUSHING my to-do list.
(And the team will continue to crush it while Iām asleep. Thatās the š)
Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.
This means we get 3x the productivity of a similar company. š„
Let me repeat thatā¦3x PRODUCTIVITY vs. our competitors.
Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.
There is ALWAYS someone senior awake. It could be Martin in Barcelonaā¦Nat in New Yorkā¦Vineet & Arif in New Delhi.
Well, the first step is to have an actual side hustle youāre launching. Not just an idea, a validated business.
MAJOR KEY: Do NOT spend money until youāve made your FIRST DOLLAR! šššš
(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)
One of the easiest ways to start is with Airbnbāyou can start that in 10 minutes. Literally. (Hereās a guide if you need it.)
Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.
Iām gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. šµ š
From what software to use, how to build a team, how to keep.
In the meantime, drop a comment if youāre ready to build some wealth and any questions if you want moreā¦
Letās get to work. š
PS: If you canāt be bothered with video and just wanna get to work, weāre hosting a TRIBE U workshopthat will help you get this process started on the spot. Itās $479 $49. š„
But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.
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