Good morning from the Stock Market Revolution!
Today, stock futures are trending lower despite a $1.9 trillion US stimulus plan. Yesterday, Biden announced its American Rescue Plan.
Specifically, the plan is expected to:
Let’s understand a bit the total amount of money that Biden needs. For addressing COVID-19, Biden intends to use $400 billion:
In order to provide immediate relief to working families, Biden will need to print $1 trillion. Working families are expected to receive $1,400 per person to pay their bills:
Notice that Biden is also calling on Congress to extend the foreclosure moratoriums until September 30, 2021. Most investors will wonder what will happen in October 2021:
The new administration is also expected to increase the minimum wage to $15 per hour. I wonder once the pandemic is over, whether the minimum wage will go back to its previous level:
Finally, $440 billion will be needed to send a lifeline to small businesses and public transit workers, as well as to protect educators among other purposes:
With regards to currency markets, I see the USD rebounding. The currencies showing more strength than the USD include the CHF, and the JPY:
In pre-market, I see cannabis stocks trending higher. The market is pushing the share price of SNDL, TLRY, and ACB after Aphria Inc. (NASDAQ: APHA) delivered massive sales growth. In Q2, the company showed 99% sales growth as compared to that in 2020. APHA also showed positive adjusted EBITDA. In my view, APHA will most likely show massive stock gains:
I really like APHA’s financial profile. The company does not only report massive amount of cash, $320 million. APHA is expected to show growing free cash flow in Q2 2021. As a result, I would expect value investors to have a look at the company in the near future:
On a final note regarding cannabis stocks, remember that Aurora signed an agreement with a sales broker in Canada. As a result, I would expect investors to push the share price up in the near term:
Finally, without any news, traders are pushing up BlackBerry’s (NYSE:BB). Remember that in December, the company delivered a very decent earnings report. Many traders out there believe that in 2021, BB could execute a turn around movement.