Wine, Beer, Spirits & Cannabis...

The North American equity markets were relatively flat to modestly higher on the week as the slow summer trading action continues. I would expect the volatility and volume to pick up in September as most of the large institutional traders are back in front of their screens.

There was more big news out of the cannabis space with wine, spirits and brewer (Corona) Constellation Brands increasing its stake ($4 Billion) in Canadian cannabis producer Canopy Growth. Shareholders got a nice boost as the stock spiked 30% higher on the news. 

My cannabis stock watchlist has grown to well over 30 names and this doesn't include companies listed on the CSE. As the industry matures many of these companies will not be able to compete. If you are invested in the space or thinking about getting in, be sure you choose wisely. 

CEO Bruce Linton made an interesting comment with regards to Canopy's competition saying, "There will be two or three companies that are decent out of the whole pack, as for the rest there won't be consolidation but disintegration." 

You can listen to the entire interview here.

Another Zero-Fee Announcement...

Last week I mentioned the new zero-fee funds from Fidelity and this week Canada's largest Robo-Advisor Wealthsimple, announced that they are launching a no-fee trading service in Canada.

The reduction of fees is definitely a trend that continues to dominate in the world of FinTech, but here in Canada most retail investors are still clueless as to what they are paying. From BNN Bloomberg Last week:

As an example, a typical annual management fee, or management expense ratio (MER), of 2.5 per cent on a $500,000 mutual fund portfolio might seem harmless. But investors would probably go into shock to find they are paying $12,500 per year. 

While most baby boomers and gen Xers continue to get fleeced, millennials are on the ball and getting it right: 

While 15 per cent of baby boomers consider themselves “delegators”— those who cede all decisions to their financial advisors — only 10 per cent of millennials do the same. Meanwhile, 39 per cent of millennials consider themselves “validators” —  those who consider their advisor more of a sounding board for their own ideas, compared with just 24 per cent of boomers.

Twenty-two per cent of millennials have used a robo-advice service, compared with only nine per cent of gen X investors and three per cent of boomers. Fifty-two per cent of millennials using robo-advisors attributed their usage to a desire for lower fees.

Nice work millennials!


Below are five of the stronger trending stocks on my CM50 (Canadian MegaTrends) & UM50 (US MegaTrends) lists. 

The momentum continues in select technology stocks in the US. while in Canada there were a couple new names grinding higher on the list from the air freight courier and pharmaceutical industries. 

Remember that chasing stocks higher is not recommended and even the strongest trending stocks can experience significant drawdowns. 

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