S&P 500 and Cannabis Stocks Close 2nd Quarter at New 52-Week High

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S&P 500 and Cannabis Stocks Close 2nd Quarter at New 52-Week High

michael vodicka

After getting off to s tough start to the year, the S&P 500 and cannabis stocks rallied and ended the second quarter at a 52-week high.

Greetings Friends,

Summer is in full gear. There’s a heat wave running across the country.

In Chicago temperatures have topped off above 95 degrees in each of the last three days. I do love the heat, but when you factor in the humidity, it’s pretty brutal out there.

For the last few days any time I walk outside I am dripping with sweat within minutes.

And this is while I am wearing light canvas shorts, a cotton t-shirt and no socks.

I saw guys getting off the train wearing full suits. Poor guys. That is inhumane.

Chicago isn’t the only thing heating up this summer.

With the first half of the year in the bag, stocks are on a roll.

The S&P 500 and cannabis stocks closed the second quarter at a new 52-week high. Take a look at the breakout below.

S&P 500

This bullish movement may come as a surprise. After all, stocks got off to a brutal start in 2016.

Back in February the S&P 500 was down more than 12% just six weeks into the year.

The Dow Jones recorded its worst start to the year ever in 2016.

At the time, the ‘experts’ were waving the white flag, warning that it could be the beginning of a new bear market of financial crisis.

As always the fear mongering turned out to be completely wrong.

Just like it has done hundreds of times before, the stock market recovered and charged higher.

This is another example of why I encourage my clients to ignore all the negativity.

The media loves to scare the hell out of its audience. Fear mongering gets more clicks. It drives sales. It increases revenue. It’s great for business.

But it’s a terrible way to invest.

Blue Chips and Cannabis Stocks Up Big in 2016

With the global stock averages having a good year, some individual stocks have done even better.

Match.com (NASDAQ: MTCH) is up 18%.
Amazon (NASDAQ: AMZN) is up 19%

While those gains are impressive, some of my favorite cannabis stocks have been even stronger.

U.S. dispensary owner Terra Tech (OTC: TRTC) is up 244% this year

Canadian medical marijuana company Aphria (TSXV: APH.V) is up 87% this year.

Marijuana biotech GW Pharmaceuticals (NASDAQ: GWPH) is up 36% this year.

I’ve been promoting cannabis stocks with a new landing page. If you haven’t seen it you can check it out below.

Legal Cannabis is the Fastest Growing Industry in North

Many of my clients have already invested in cannabis stocks. There’s still plenty of time to capitalize on this long-term opportunity. Contact me if you’re interested.

I Expect Volatility – But Focus on the Big Picture

Looking forward, I am expecting stocks to remain strong, but I am also expecting more volatility.

There are lots of things for the market to worry about.

That includes weak economic growth across the world and in the U.S., slow earnings growth in the S&P 500 and the election in November.

But as we just saw, short-term volatility is no reason to worry about the long-term potential of the S&P 500 or pull your cash out of stocks.

I’ll be back in a few weeks with another update.

Your Investment Partner,

Mike

Disclosure: Michael Vodicka owns shares of TRTC, GWPH, CGC, APH, MTCH.

This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.

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