Friday, January 5, 2018

Take This Job And Shove It

There was a minor earthquake yesterday in San Francisco.  It is NOT true that the earthquake was caused by the millions and millions of Millenials, who were rolling their eyes when they heard that Attorney General Jeff Sessions had given license to the U.S. Attorneys across the country to begin prosecuting marijuana cases again.  Generally speaking, Millenials have as little respect for pot laws, as Fox viewers have respect for the news media.  But, that's not important.

The investment perspective is always more important.  All U.S. marijuana companies immediately dropped, after his announcement.  The pot index or EFT (MJX) started the day at $36.84 but dropped to $34.19 and closed the day at $35.47.  You would think a stock would drop more than a mere 3.7% when the Attorney General unleashed the Justice Department on them?  The reason is that most publicly-traded marijuana companies are not inside the United States.  Canada and Australia are now dominating the U.S. in this sector.  Australia has even announced plans to make the export of medical marijuana a trade priority.

Those jobs are NOT coming home.