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News Roundup: Gold’s $3,000 Target, Cannabis Sales Spike and More

News Roundup: Gold’s $3,000 Target, Cannabis Sales Spike and More
By Adam Sharp
Date April 24, 2020

I’ve been tracking several news stories this week. But there are four in particular that need further exploration…

Bank of America hikes gold price target to $3,000: Bank of America is suddenly bullish on gold. It set an 18-month target of $3,000 in a report (shockingly) titled “The Fed Can’t Print Gold.”

This is a surprisingly good analysis considering it’s coming from a big bank. Back on March 20, when gold traded at $1,479, I said gold could reach $3,000 in the next year. So this report is very much in line with my thinking.

Gold was trading at $1,755 on Thursday. So it could have quite a way to go in the near term. And I believe prices will go far higher than $3,000 over the next five years.

Marijuana sales spike 30% in Oregon: Cannabis sales were up 30% in March compared with last year. This makes March the highest-ever month for cannabis sales in Oregon.

Stockpiling may explain the jump. But the fact that sales increased so much despite high financial stress is an encouraging sign for the industry. Most cannabis retailers have been deemed essential businesses. And the crisis doesn’t appear to be hurting demand.

I continue to look for attractive investment opportunities in the cannabis space. Share prices are depressed. And the companies that handle this crisis well will have very bright outlooks.

Confidence in the Federal Reserve jumps higher: A Gallup poll conducted from April 1 to April 14 shows that approval for Fed Chairman Jerome Powell has reached a new high at 58%. That’s the highest approval level for a Fed chairman since 2005 when Alan Greenspan was in charge.

It appears that Americans, so far, approve of the Fed’s dramatic actions to stimulate the economy. However, it remains to be seen what the long-term effects of these actions will be.

Work-from-home trend may stay after crisis: Companies worldwide have been forced to implement work-from-home (WFH) policies where possible. I suspect that even after this crisis ends, WFH will remain a popular option for many businesses. If WFH does become a widespread and permanent trend, it will have a profound economic impact.

Startups that enable WFH have an incredible opportunity in front of them. And I’m actively looking for promising deals in that space. However, like any other “hot” sector, beware shady operators. Hot sectors attract bad deals like flies to garbage. So do your due diligence. And make sure it’s actually a solid opportunity before investing.

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