A Canadian trade war surprise and a blockchain Facebook foe

In my June 6th interview with Jim Goddard, I touch on some key themes we have covered in our recent reports including our market report's observation that Canadian stocks are winning the trade war if we take the December 1st China takedown weekend as the starting point of the conflict.

Canadian midcaps have been outperforming US midcaps since December 3rd

The question is why? With Justin's Trudeau's socks out of fashion, there must be something else at work. That just might be tariffs. I came across an interesting chart from Ninja Economics on Twitter that shows Canada as having the lowest tariffs of all major economies. The chart is from the FT based on work done by Justin Weidner at DB Global Research.

Maybe there are fundamental #cdnpoli reasons why Canadian stocks are winning the #TradeWar. https://t.co/m2a7txOqf6

- Ted Dixon (@TedDixon) June 5, 2019

In the second section, I highlight a key observation from our June Top 40 report that marijuana stocks had dropped from the list. A newcomer to the list was a Canadian agriculture producer that is growing its exposure to pea production. We also featured the stock in our June 3rd morning report. Will pea pods become as pervasive in social media as marijuana leaves? We'll have to see.

Out with the leaves and in with the pods?

I close out the broadcast discussing a key take from our June 5th US market report that a major reset is likely on the way. I suggest that stock-specific situations will become increasingly important as the broad market consolidates. The old playbook likely will not work, and I point to Voice, which is a soon to be launched blockchain competitor to Facebook (FB). On that front, Block.One, the company behind the new social network, is reported to have spent $150 million on its platform.

Will the Voice be heard over the Facebook noise?

TSX Venture-listed Galaxy Digital (GLXY) is an investor in Block.One although it has recently monetized a significant portion of its original investment.

This post first appeared on INKResearch.com.

Disclosure: I hold shares in GLXY