starsearcher40 wrote: While we invest in individual stocks, and focus on the pluses or minuses of those stocks, I also pay attention to the broader backdrop of the overall market.
Think of your stock as a moterboat. You have a destination in mind, and you will eventually get there. But your ride from here to there can be at either extreme, and it DOES make a difference. Do you have calm seas and a tailwind? Or are the seas choppy and the wind is right in your face. Yes, you'll still get there, but the ride can make a difference to the journey.
Those seas are the overall broader market, and while Canopy has certainly has made any number of fantastic moves so far, it also has had pristine broader market conditions acting as a huge tailwind.
I think those market conditions are on the precipice of change, and obviously for the negative. It's been SUCH an extended bull market since 2008. The stock market can also be thought of as an individual stock, and as we know, nothing goes up forever.
There are (of course) views all over the map. Some will say a crash is coming. Some will say blue sky for multi more years. You have to decide. Personally, I think we are at or nearing the top. To be sure, I thought this a year ago too and was clearly early with that thought. Then again, the height of exuberance is often the beginning of the change. If we weren't there a year ago, we certainly are there now.
There was a good piece on CNBC this morning. Here's the link:
Click Here What difference does this make for WEED? Ultimately, in the longest perspective, nothing at all. Just a note that at some point, soon I think, that tailwind will stop and the seas will get more stormy. As a stock goes, for all stocks not just Weed, the ride up will take a little more effort.
Just a little perspective tossed in from the broadest viewpoint. Personally, I always try and think of any stock from within the context of micro concerns out to the broadest macro elements. Food for thought.