You can always expect this sort of news to happen when markets get bad. This is a very important news item so pay attention.
Treasury Secretary Steven Mnuchin and Vice Premier Liu He have reportedly resumed discussions about a possible deal that would ease trade tensions.
Mnuchin and He spoke via phone on Friday, The Wall Street Journal reported.
The US is demanding that China put forth an offer before negotiations on a trade deal can begin, while China would like discussion to begin before making a formal proposal.
Trump is an ego-maniac. He will not permit his big beautiful stock market to be sullied. He will ensure a trade deal is worked out with China. That being said, we need to see if this actually moves the needle. At some point, there will be diminishing returns on US-China trade talks and we might even trade lower on the news. We cannot truly go into a bear market without a China trade deal done and the Fed removing themselves from this storyline. Now if we go lower in spite of those two things happening, then we have a problem.
Nasdaq futs are +40.
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“According” to the Wall Street Funeral. Futures sperg.
off topic… a prelude to a run-up of mj stocks down the road??
https://www.marijuanamoment.net/texas-lawmaker-files-marijuana-decriminalization-bill/
The trick is: is this priced in? Your article says that Texas Republicans adopted this position in July. Of course, Democrats already supported it. MJ stocks are already priced based on tremendous futre earnings and growth with negative current earnings and high price/revenue numbers.
So you have to ask yourself, “Do you feel lucky, punk?”
Now consider the “tide”. In a bull market, it is much easier for high risk/reward stocks to bubble upwards. This is much harder in neutral/bearish market.
So what I would suggest (at the very least) is that if you are in it for the long haul, and not just a trade, make sure to compare MJ stocks and pick the best ones, or at the very least, buy basket of at least 5 of them. Maybe look at the ones that want to get into states where it is currently illegal. Or better yet, gather up some dough and wait out for a better entry price.
Take a look at TLRY. It is valued at ~$10B. Here is the net income:
3/31/17 -$388M
6/30/17 -$2.32B
3/31/18 -$3.7B
6/30/18 -$11.0B
Those numbers are moving in the wrong direction. I’d want to know why before putting a dime into it.