A Stock Market Fantasy Land | Midas Letter RAW
Despite concerns stemming from Biden’s announcement of increasing capital gains taxes for the rich, the major U.S. indices and stock market barely moved this week. Volume may have reduced but company valuations remain stable and buoyed to go higher.
This is a byproduct of the extreme levels of liquidity in the entire system. The entire G7 has resorted to quantitive easing in the form of bond-buying and loan lending.
The result is a stock market that is a complete fantasy land – where equities are only going up by virtue that there is more money chasing them.
We have four exclusive interviews on deck in today’s episode:
1.Graphene Manufacturing Group Ltd. (CVE:GMG) CEO Craig Nicol.
GMG is a clean-tech company that produces graphene and hydrogen by cracking methane (natural gas) instead of mining graphite. The company’s proprietary process produces high-quality, low-cost graphene which has environmental improvements while reducing costs. GMG is collaborating with the University of Queensland in Australia to manufacture commercial batteries.
It, unfortunately, seems like there is a mass fatality event every time you look at the news these days in the U.S. Liberty Defense looks to control this problem by providing advanced security solutions for concealed weapons detection in high volume foot traffic areas. The company’s AI technology is contactless/harmless and can detect metallic and non-metallic threats, including explosives and IEDs. Liberty Defenses machine learning threat detection has secured a licence with MIT for 3D radar imaging patents and has beta testing agreements at some of the world’s most well-known sporting arenas, airports, and public centres.
As single-sports betting in Canada became legal yesterday and the global online gambling industry is already estimated to be worth $150 Billion, we like the betting market opportunity. FansUnite already has 300,000+ registered users on its various platforms. The company has brought in $350 Million in B2C betting volume since its inception. FansUnite has also recently made a few strategic partnership deals as it looks to expand into the U.S. and other markets.
Arizona approved recreational cannabis in the November elections and launched its first sales in January. Harvest Health is headquartered in Arizona which helped its total yearly revenue increase 98% YoY. The company has set a 2021 revenue target of $380 million and is looking to grow through organic license wins, service agreements, and acquisitions.
Midas Letter RAW is the irreverent/intelligent show about investing for the little guy. A former stockbroker and reformed accountant, Ed Milewski, brings his expert but off-beat technical chart observations into focus. At the same time, investment writer James West offers plain language critique of the machinations, shenanigans, and subterfuge foisted on retail investors by the institutions we call capital markets.