Market. We are in a Twilight Zone right now – we have seen the best of the market and from here on in we are in a trading market. Investors will not buy something and hold it for five years anymore. Strange things will happen – like Bitcoin – things that happen near the end of the cycle. The Nasdaq still has rooms to fall – one nasty day does not a correction make. He thinks a pullback to 2550 for the S&P is likely.
Lumber stocks and home builders in the US have a stock chart like this one – plunging down to the right. At these levels, the valuations are suggesting a depression is coming – he does not believe in this. His downside target is $66, so based on his model, it is a buy if the market can find a bottom soon.
The company has a hydroponic division that is getting into cannabis. He thinks cannabis is a busy space with 168 companies now claiming activity in the field. His analysis suggests (based on Colorado’s experience) the sector will face rapidly plateauing sales after the first couple of years. About 6% of the population turned out to be regular users and 80% of the population doesn’t care. He would not buy this based on their entry into cannabis.