Waiting for Inflation, SPACmania, and Dislocations in the Cannabis Bull Market

Published on
February 10th, 2021
Duration
27 minutes


Waiting for Inflation, SPACmania, and Dislocations in the Cannabis Bull Market

Daily Briefing ·
Featuring Jack Farley and Max Wiethe

Published on: February 10th, 2021 • Duration: 27 minutes

Real Vision editors Max Wiethe and Jack Farley delve into what Fed Chair Powell’s remarks indicate about the future of monetary policy and the economy. Max catalogs the rally in cannabis equities and notes that the bulk of the euphoria seems to be located in Canadian pot stocks, which may not be as favorable as their U.S. counterparts. After noting the tremendous volatility in MicroStrategy Incorporated ($MSTR), Jack and Max interpret what today’s reading for the Consumer Price Index, which fell slightly below expectations, means for reflation trades such as banks and energy. They close by giving a sneak peek of upcoming interviews with Julian Brigden, Howard Marks, Joel Greenblatt, and Lyn Alden as part of the “Is Everything a Bubble?” series.

Comments

Transcript

  • AK
    Arthur K.
    13 February 2021 @ 20:45
    Very informative on a wide range of topics. 👍
  • JD
    John D.
    11 February 2021 @ 15:37
    Max's face after Jack says "you could not be more wrong Max" is priceless. LOL
    • MW
      Max W. | Real Vision
      12 February 2021 @ 03:02
      At least you know it's not scripted.
  • mf
    massimo f.
    12 February 2021 @ 02:40
    Would it be possible to leave the reddit terms on reddit?
  • JJ
    John J.
    11 February 2021 @ 20:56
    That was painful. Jack should go back to reporting the news.
  • AB
    Alastair B.
    11 February 2021 @ 01:50
    Quick question: why are ‘pot stocks’ so hot when they sell a product that can be easily grown by the user? Doesn’t this cap the amount they can charge for their product? I know this is technically true of any agricultural product but it’s a lot easier to grow a month’s worth of pot than a month’s worth of potatoes.
    • MW
      Max W. | Real Vision
      11 February 2021 @ 02:22
      In short that’s just not how it’s going to go down. You don’t even have to smoke it, you can literally see the difference in quality between what is grown in countries like Uruguay and the stuff being produced in the US and Canada. The final product significantly benefits from skilled industrial production. On top of that the flower is not the final product. Secondary products like edibles and concentrates make up huge amounts of the revenues of these business and trends suggest they are gaining share. As well as these secondary products also benefitting from a skilled hand, some products like concentrates are just dangerous to make at home. People have blown themselves up using butane to make their own concentrates. Yes, some people will grow their own. But I’d say letting that get to you is a bit like not starting a brewery in 2005 (which if you ask some of the early craft brewery founders is a freaking license to print money) because you are worried about the home brew movement. People are lazy and professionals are usually better than amateurs. I kid, but we're talking about stoners here and you're saying the risk to the trade is their work ethic and ingenuity 😂.
    • JN
      Jason N.
      11 February 2021 @ 05:47
      Thanks Max for the insightful response! Most people can barely keep a houseplant alive let alone weed - which is MUCH MUCH more demanding!
    • SM
      Suzanne M.
      11 February 2021 @ 15:27
      Do you buy tomatoes?
  • SM
    Suzanne M.
    11 February 2021 @ 15:25
    Terrific selection of topics. I'm a cannabis investor, and I appreciate the discussion of Canadian vs. US companies in this space. I sense Gamestop-type fervor over some pot stocks, but I've been studying different companies for years, and I have my favorite steady Eddies.
  • JW
    Jeff W.
    11 February 2021 @ 12:00
    SPACS are nothing but a regulatory arbitrage. They are simply an easier listing route for vendors. They will go well for everyone until they don’t. Then the investors chasing easy money will once again get pounded - and the vendors will be long gone with their bags of money. Akin to a low-doc mortgage. They sure went well.
  • DM
    Diego M.
    11 February 2021 @ 04:21
    great one, cheers from MX
  • NF
    Nelson F.
    11 February 2021 @ 02:49
    I’m glad Max finally pointed out that many of the Canadian cannabis companies have operations in the US and are anticipating legalization but also many of the smaller ones who don’t may become takeover targets so I think Canadians rallying actually makes quite a lot of sense.
    • BM
      Bradley M.
      11 February 2021 @ 03:24
      Brand recognition. "BC Weed" imports from British Columbia have been making their way illegally to California (arbitrage quality vs Mexico) for decades.
  • dw
    david w.
    11 February 2021 @ 03:20
    Good. Thanks
  • BM
    Bradley M.
    11 February 2021 @ 03:18
    Good jobs guys. Like the banter and competition! Hit the record button and I flounder. Comparing your videos from a few months ago compared to today... awesome. I'd watch you guys ahead of the talking heads on tv. Keep hitting that record button!
  • NL
    Nikola L.
    11 February 2021 @ 02:18
    thanks kids. good stuff. especially the cannabis bit.
  • JH
    Joel H.
    11 February 2021 @ 02:01
    Give me Boockvar
  • JH
    Joel H.
    11 February 2021 @ 01:59
    content just old...i guess it was boring day but nothing insightful
  • JA
    John A.
    11 February 2021 @ 00:28
    Good reporting Jack, the herd on WSB doesn't believe the published short interest. Note, there is a behind the scenes fight among the moderators of WSB and there may be a lot more censorship going on explaining why you aren't seeing GME posts. But one way or another, I think the momentum is stopped and there would need to be some sort of evidence that the short interest data is actually faulty in some respect. For me, it just isn't a trade that I'm interested in, but it is a story I am interested in because this I believe will wind up being the "story" stock for explaining this market peak to future generations when the signs started pointing to a negative outcome. Our Bear Sterns & Countrywide Financial for 2021
    • JF
      Jack F. | Real Vision
      11 February 2021 @ 00:30
      Hi John, thank you for this. I too have seen posts accusing the r/WSB mods of censorship, and that is an angle that is definitely worth considering going forward
  • JM
    Jason M.
    11 February 2021 @ 00:23
    Take your profits on the way up, very very few of these HEMP/POT Canadian firms have any earnings.
  • JS
    John S.
    10 February 2021 @ 23:45
    The future diamonds of RV - Jack is great and Max well Max is superb - Max if I can ask you how old are you? You express yourself amazingly. Thanks both!
    • MW
      Max W. | Real Vision
      10 February 2021 @ 23:59
      Thanks John. I'm 26.
  • RS
    Rob S.
    10 February 2021 @ 23:36
    Really enjoying the Real Vision young guns, they have lots of energy and some excellent ideas! Rob S