Article by Caleb McMillan, Cannabis Life Network
You’d think having the Senate vote in favour of the Cannabis Act would be good news for Canada’s large licensed producers.
But following the news that the Senate passed Bill C-45, the stocks of companies like Aphria, Aurora and Canopy dropped.
Perhaps investors realized that the Senate’s passing didn’t guarantee royal assent. That it must now go back to the House of Commons.
And then, once the House is satisfied, it will send the Bill back to the Senate. And then the Senate will look it over and send it back to the House.
It’s possible this rigmarole may last until the next election.
Regardless, we both know that LP valuations aren’t reflective of an underlying reality. We are in a stock market bubble and the LPs are a symptom of that.
And it’s not just Canada’s LPs and it’s not just a Canadian stock market bubble.
The graph below demonstrates this easily. The first is from the St. Louis Federal Reserve Bank, a branch of the nation’s central bank.