Fed Suggests Stock Market Can Only Go Up? | Midas Letter RAW ($XRTX, Tyson 2.0, StoneCastle Cannabis)
Amidst all the discussions that the Fed will start tapering by reducing the number of treasury securities they will purchase through mortgage-backed securities (MBS), we find conflicting statements indicative of a further increase in the money supply. With all the extra liquidity hitting the stock market, the prices of the most extensive stocks on the NASDAQ can only go up.
On November 3, 2021, the Federal Open Market Committee (FOMC) directed the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York to increase the System Open Market Account (SOMA) holdings of Treasury securities by at least $70 billion per month and of agency mortgage-backed securities (MBS) by at least $35 billion per month during the monthly purchase period beginning in mid-November. The FOMC also directed the Desk to increase SOMA holdings of Treasury securities by at least $60 billion per month and of agency MBS by at least $30 billion per month during the monthly purchase period beginning in mid-December. The Committee judges that similar reductions in the pace of net asset purchases will likely be appropriate each month, but it is prepared to adjust the pace of purchases if warranted by changes in the economic outlook. As directed by the Committee, the Desk will complete the monthly purchase plans issued in mid-October. – Federal Reserve Bank of New York
The stock market has now seen a record number of record highs set in one year. With markets being this hot, the opportunities for investors are vast.
But here at Midas Letter, we like to try to find the companies making a difference in the world.
A prime example is our most recent interview with XORTX Therapeutics Inc (NASDAQ:XRTX, CNSX:XRX). XORTX is a biotech company that has written provisional patents for its novel formulation to decrease acute kidney injury (AKI) and health consequences associated with Coronavirus (COVID) infection. Onto of its life-changing therapies, its stock price has seen its share price rise 125% this year, delighting many shareholders. But, what may intrigue new investors is the company’s recent up-listing to the NASDAQ stock exchange and its 11.74-to-1 share consolidation. A company with a small share structure with drugs at the advanced clinical testing stage is rare.
We also have two big weed stocks interviews on deck
Mike Tyson is coming back to the cannabis fight with a new line of Tyson branded products. Tyson 2.0 has a crucial partnership with Columbia Care (OTCMKTS:CCHWF, NEO:CCHW) to distribute its products in their retail locations with wholesale opportunities.
Bruce Campbell, Portfolio Manager of the StoneCastle Cannabis Growth Fund, also joins us to provide the latest developments in the cannabis market. His invaluable insights are a must-watch for weed stocks investors.
Watch the whole Midas Letter RAW show for the latest and most significant analysis of Bitcoin (BTC), Tesla, and copper, as well as answer your audience’s questions.