This week’s Q&A is all about timing…
The flood of comments we’ve been receiving from our members over the past few weeks has been truly inspiring and I’d like to address a few of the most common themes.
Now, you know how much I love doing these Q&A sessions as videos, but like many of you, I’m working from home and my internet has a mind of its own.
I managed to cover a few of your questions in the video below, but I couldn’t get every answer recorded – so make sure you keep reading after you watch the short video to get the full story.
James Y. asks, “I have had to stop out most of my cannabis holdings at big losses. Is it wise to buy back in now, again? I have confidence in the industry as a whole but I am confused as to when the lows will be. Any suggestions?”
Linda L. asks, “When will be the best time to buy in? And not having a lot of excess funds, how much do you advise to buy with $100 to $300? Or does it have to be more?”
Stuart R. asks, “Don, I would be interested in your thoughts regarding which of our portfolio stocks you would be targeting first for purchase when this whole thing bottoms out. Thanks.”
William G. asks, “When is the best time to buy more stocks? Now? Or should I be waiting for the freefall to stop?”
Steven L. asks, “I just signed up with your program. How does the coronavirus situation affect marijuana stock performance? Should I invest now or wait and see the outcome of the virus?”
Thank you all for your questions.
It looks like many of you are looking for the best moment to jump in or add to your cannabis stock positions.
And you all have the right attitude. The opportunity to get into cannabis stocks at incredible valuations is unprecedented. The market is giving us a gift.
I don’t think the time is right quite yet to jump back in, but I’ll be sure to tell you when I do. The broader equity markets could see even more losses, and cannabis stocks could trade down in sympathy.
For all of you wondering what the best cannabis stocks are to buy, my suggestion would be that you join NICI Membership. I’ll let you know what stocks to buy and when. You’re free to learn more about that research service here.
For James, I understand your frustration with stop losses. They don’t provide as much protection as you’d hope when the market gaps lower. They can be a great tool, but they don’t work well in all market conditions.
And I’m with you. I too have a lot of confidence in the industry and am excited about what’s in store for cannabis stocks.
For Linda, I can’t give personal advice, but I will say that it’s wise to only invest money that you know you don’t need for quite a while. These are long-term investments, and you don’t want to have to sell stock at an inopportune time just to cover expenses.
Maynard K. asks, “What about HEMP, should I stay, or should I go?”
Maynard, when it comes to Hemp Inc. (OTC: HEMP), I would go! A quick glance at their financials makes me think this is a typical penny stock operator. They issue stock like Santa hands out candy, and that stock usually lines the pockets of insiders at the expense of shareholders. There are much better ways to play the cannabis boom than companies like HEMP.
Well, that’s all for this week. Keep the questions and comments coming. And remember, keep looking forward.
Don Yocham, CFA
Executive Director, National Institute for Cannabis Investors
14 responses to ““The Market Is Giving Us a Gift””
March 27 2020