Midas Letter

If you think 2020 has been volatile in the stock market, you haven’t been invested in cannabis for an extended period of time…

Before 2019, cannabis stocks everywhere gave investors 3 years of gains… But that all changed when the cannabis bubble burst around April 2019…

There are a variety of reasons why cannabis companies colossal valuations were massively deflated…

1.There is no money in solely growing cannabis (anyone can do it…)

2. Canadian black-market still dominates

3. Supply issues and slow physical dispensary rollout

4. Share dilution

5. Fraud…

But, we are seeing a massive resurgence in U.S. multi-state operator stocks… Some stocks (such as GrowGeneration Corp NASDAQ:GRWG) were up around 500% since the COVID lows.

There are a variety of reasons why this is true and why it will continue to be true for certain companies who have the strategic advantage over others.

Watch the full interview to see how legality will affect the cannabis market with elections coming up and what U.S. marijuana stocks are poised to explode higher…

Original article: Why Now is the Time to Buy U.S. Cannabis Stocks©2020 Midas Letter. All Rights Reserved.

The momentum levels have been telling us this for the last few months…

Just look at:

1. The number of stocks trading above the 200 day moving average

2. The number of stocks trading below their 50 day moving average while equity prices have only risen

3. The bond market no longer driving the stock market

4. Money moving back-and-forth between gold and USD

5. The put-to-call ratio It is normal for the stock market to cool-off after such a meteoric rise…

There hasn’t been any major catalyst for there to be a fundamental shift to change are methods of trading.

Don’t go looking to short the market, just follow these few simple rules and strategies in this video when the markets sell-off…

Original article: Stocks to Buy when Markets Sell-off©2020 Midas Letter. All Rights Reserved.

Modern Money Theory is a new heterodox macroeconomic conjecture. The idea that governments no longer need to balance budgets, a nation’s revenue need not be derived from taxation, and where governments can now borrow indefinitely from themselves…

A theory, now widely endorsed amongst academics, supports that economic data is no longer a contributing factor to the stock market…

When there is a dip in the stock market, in-steps the Fed to prop up asset prices through quantitative easing and printing money.

This obviously isn’t sustainable in the long-run, but how can we profit from it in the short-term?

Well, as long as a stock’s pullback is healthy and doesn’t fall off a cliff causing wide spread selling. The dip becomes a viable investment opportunity.

There have been 2 historic stock splits recently. Namely, Apple Inc. (NASDAQ:AAPL) and Tesla Inc (NASDAQ:TSLA). In terms of their stock market price, both companies have seen “buy the rumour, sell the news” action, resulting in a short-term dip.

Watch the full interview to see if we think now is the time to buy for Tesla and other NASDAQ-100 technology stocks.

Original article: Is Tesla a Buy after Recent Pullback?©2020 Midas Letter. All Rights Reserved.

The Federal Reserve System (FRS) is the central bank to the U.S. government. Their main function is to set monetary policy to uphold a dual mandate: a) keep employment steady and b) maintain a healthy inflation rate of around 2% per year. How would you say they are performing on those economic measures? (rhetorical question)

Since 2008,  the fed has failed to hit that 2% objective. Usually, the monetary tool used to maintain that steady inflation rate is interest rate manipulation. However, since the fed no longer needs to hit that 2% target every year and instead need to keep an “average” inflation rate, there are simply no ramifications for the fed to ever touch interest rates.

What does this mean for investors? Interest rates will remain low, allowing for the rising prices in the stock market – as long as money keeps on getting printed…

Should you embrace this new monetary normal by ignoring economic data and solely focusing on the stock market? We think not, but at the time being, it does allow for HUGE gains in the stock market.

Watch the full interview to see which stocks could take advantage of this “modern monetary theory”.

Original article: Stocks to Watch in Q3 2020©2020 Midas Letter. All Rights Reserved.

We have cycled through all the letters for what kind of shape recovery the market has adopted since the onset of the Coronavirus. On the surface maybe it resembles a V, but if you dig into the fundamentals even a K recovery makes sense; Whereby the disparity between companies and people doing well and those struggling are widening.

I mean, just look at this scene straight from Marie Antoniette happening outside of Amazon.com, Inc. (NASDAQ:AMZN) CEO’s house yesterday as he became the first individual in history to have a net worth over $200 billion.

https://s3.amazonaws.com/midaslettervideo/wp-content/uploads/2020/08/28111554/45WxTASjDRpH3sHm.mp4

Protesters assembled outside of @JeffBezos‘s DC home have constructed a guillotine. pic.twitter.com/pDFcTg81K9

— Washington Examiner (@dcexaminer) August 27, 2020

The S&P 500 Index (INDEXSP:.INX) has seen its best August since 1986. The technology stocks have boomed since the start of the recovery from COVID-19 and have supported the theory that the overall stock market has been in full bull market mode. But this disparity has led to major concerns on whether “bubble” could burst.

Meanwhile, the U.S. Fed are doing everything they can to not let that happen with interest rates due to remain low for the inconceivable future.

Can we see the stock market rally even higher? What does the Fed’s new monetary policy mean for the future of markets? Is this a stock market bubble?

Watch the full interview to find out the answer to all those questions and more…

Original article: Are We in a Stock Market Bubble?©2020 Midas Letter. All Rights Reserved.

Abbott Laboratories (NYSE:ABT) received approval from the FDA for its rapid antigen test. The test which allegedly can detect whether a patient has COVID-19 in under 15 minutes.

According to healthcare professionals the “$5 rapid test” could be the game changer in testing protocols for the virus.

As there is an increasing perception that the Coronavirus is less of a threat with new testing methods like this one and possible vaccinations developing… how will the market react to short-term COVID headlines and where will the broader markets trend towards?

Well, Abbott’s stock was up 8% on the back of the news as of writing this and transports such as airlines and cruise-liners were starting to catch a bid.

Watch the full interview to see which stocks Lance Ippolito is trading to make money today…

Original article: How Will $5 Rapid COVID Test Affect the Overall Stock Market?©2020 Midas Letter. All Rights Reserved.

Tesla Inc’s (NASDAQ:TSLA) incredible run to the upside – reporting nearly a 400% gain just this year – has left many a fundamental investor baffled.

Last month, Tesla reported its 4th straight quarter of profits which qualifies the company to join the S&P 500 Index (INDEXSP:.INX). This inclusion will only fuel further investment from traders worldwide. The 5-for-1 stock split also seems to have spurred on traders to get involved, even if the underlying value and fundamentals behind the stock price remain unchanged.

Why are investors happy to buy Tesla for what seems to be a very large premium?

Tesla is a forward looking company and investors are paying for innovation and growth. Tesla, like Steve Jobs and Apple Inc. (NASDAQ:AAPL) have done before them, are changing the way the world consumes products. Not only are Elon Musk and co. disrupting the way people drive cars, but they are also an alternative energy play. If you track the SOLAR ETF (NYSEARCA:TAN), it is up more than 66% year to date and one of the top performing sectors.

You can also make an argument that because interest rates are low, there is little else for investors to get involved with. (except possibly gold – like small-time traders such as Warren Buffett )

Watch the full interview to find out if we think Tesla is still worth investing in and where we see the stock price trending in the future.

Original article: How Much Value is Left in Tesla’s Stock?©2020 Midas Letter. All Rights Reserved.

The sector that has been overlooked from the onset of the COVID-19 pandemic that no one is talking about is… (drumroll please) Cannabis.

We are all in agreement that people are largely staying-at-home more than they have ever done in recent times. The tech stocks are up. The e-commerce stocks are up. The travel and hospitality stocks are down. These trends make sense. But it also makes sense that people are using more marijuana – recreationally and medicinally.

We have stats to back that fact up. Take the state of Florida for example: Sales of smokable cannabis products are up 143% since the beginning of January 2020. [Source: Florida Health Office of Medical Marijuana Use]

Who has been the main beneficiary of this trend? Well, keeping with the Florida theme, it’s Trulieve Cannabis Corp (OTCMKTS:TCNNF). The medical cannabis company just announced another massive quarter – reporting strong consecutive revenue growth with raised guidance.

Trulieve is up 79% YTD. If you feel you may have missed some of the value then there might also be another way to play this move into cannabis. For example, if gold is hot, it may be time to look at the shovels. Meaning we can profit from smaller sub-components which support the main investment thesis.

Watch the full interview to see which small company which has reported 10 straight quarters of growth with revenues up 120% from last year.

P.S. We spoke to the CEO of Trulieve after the company’s stellar quarter 6 months ago. Click here to watch, read or listen to what Ms. Rivers had to say.

Original article: The Return of the Cannabis Sector?©2020 Midas Letter. All Rights Reserved.

This week, traders have all had one eye on the retail sector and company earnings being reported.

We saw the big hitters in that space report financials like Walmart Inc (NYSE:WMT), Lowe`s Companies Inc (NYSE:LOW), Home Depot Inc (NYSE:HD) and Target Corporation (NYSE:TGT)…

Target being the stand-out winner – reporting record numbers in online sales. Their stock, which has already been flying, has now hit a new all-time high.

What does this mean for investors moving forward? 

It means that there has been a fundamental shift in the way consumers behave. The majority of spending for the average person is now being done online. It also means that although people have been forced into staying-at-home, they are still spending their money.

Another trend is that people are not just spending their money (earned or subsidiary given) but investing it back into the place they now spend most of their time: i.e. their home.

Home Depot, Lowes and ancillary stocks like Lumber Liquidators Holdings Inc (NYSE:LL) are all making huge moves accordingly… 

Watch the full interview to also see which other stocks we are keeping our eye on to rebound BIG in the future.

Original article: How to Profit from Online Pandemic Spending©2020 Midas Letter. All Rights Reserved.

Every quarter, the largest hedge funds and institutional investors have to disclose what they have been investing in. This SEC 13F Form allows a little sneak peak into what the “smart money” is doing in the market.

You will always find stocks like Amazon, Apple, Paypal, etc. among the ranks, but we are more interested in what stocks the fastest growing funds have been accumulating that aren’t common knowledge. So, we’ve done the digging for you and here is what we have found:

1… Used car dealer Vroom Inc (NASDAQ:VRM)

2… Commercial real estate network CoStar Group Inc (NASDAQ:CSGP)

3… NASDAQ-100 NetApp replacement Pinduoduo Inc (NASDAQ:PDD)

4… Brazilian e-commerce company which Warren Buffett has a share in StoneCo Ltd (NASDAQ:STNE)

5… You will have to watch the full interview to find out the other stocks we are trading this week along with how we are going to trade retail earnings like Walmart and what we think about Warren Buffett’s investment into gold.

Original article: 5 Unknown Stocks Hedge Funds are Betting On©2020 Midas Letter. All Rights Reserved.