WEEKEND UPDATE - December 2, 2017
Dear Purple Chippers,
Next week, we’ll be back to normal as my computer were resolved this weekend. We’ll be sending you the normal weekend video presentation for Update #262. Thank you for your patience.
[pdf-embedder url="https://purplechips.com/wp-content/uploads/2017/12/Weekend-Update-Dec-2-2017.pdf" title="Weekend Update Dec 2 2017"]Slide No 3 and 4.
Reefer Madness and Bitcoin…
I really enjoy watching stocks that behave like they’re in a bubble because you get to witness the extremes of investor psychology. As humans, we like to think that we’re always in control of our emotions, but the reality is that we’re wired to do the opposite of what a smart investor would do. Emotionally, it’s easy to do what the herd does and buy when stock prices are high and sell when stock prices are falling. Fortunately, we have disciplined processes that help us to override our emotions.
Speaking of bubbles and bitcoin, The marijuana stocks are bouncing around with moves of plus or minus 5% every day. It’s too early to say if this is a bubble, because it looks like this could be the early stages of the development of a real industry. One of the players – Aurora Cannabis (ACB-T) see slide 4 – is being seen as a possible consolidator within an early stage industry. Their market capitalization is now around $3.0 Billion compared to around $1.5 billion just 2 weeks ago. Funny that this company was formerly called Prescient Mining Corp.
On Bitcoin, there are at least 15 ETF’s (Exchange Traded Funds) that are in the process of launching to the public. This will likely lead to higher Bitcoin values over the next few months because these ETF’s will have to buy bitcoin with their new capital. From my experience, when the mutual fund companies are getting involved – the party is about to end.
We’re organizing a seminar in Montreal on December 6th at 5:30pm at our offices in the Scotia Tower: “An Introduction to Purple Chips”. If you want to touch up your knowledge of Purple Chips or know someone who would like to learn more about a smart way to invest, please invite them. RSVP to Melanie Minton at melanie.linton@scotiawealth.com
Slides 5 - 8
Our Scotia Strategists looks at Bitcoin mania.
Slide 9
No changes in our positions this week. As we’ve repeated many times in the past year, quality never goes out of style. We saw a nice appreciation in a lot of the purple Chip Stocks.
END – have a great weekend!
John Schwinghamer