Genevieve Roch-Decter and Nicole Marchand, co-CEOs of Grit Capital
FOCUS: Cannabis and crypto

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MARKET OUTLOOK

We're bullish on equity markets as U.S. jobs growth and earnings continue to be positively biased. We do anticipate volatility, however, as Donald Trump’s political gyrations and rate hikes continue. North American small cap markets, which represent the "risk-on" trade, are extremely constructive. Usually, the old adage of "sell in May and go away" holds true, but this summer appears to be different. The Russell 2000 in the U.S. has just broken out historical highs and the TSX Venture in Canada looks like it will break out of a three-year trading range to new highs. Part of this is being driven by the two sectors we will be covering today: The billions of dollars flowing into the crypto and cannabis markets.

TOP PICKS

RADNET (RDNT.OQ)

NAMASTE TECHNOLOGIES (N.V)

NVIDIA CORPORATION (NVDA.O)

NVIDIA is a way to play the crypto sector in a large cap with significantly less volatility. Although cryptocurrencies themselves have been under pressure, the race to mine more quickly and efficiently is in full force. NVIDIA’s core business is to make chips for PC gaming and game consoles, but over the last few years crypto mining has been their fastest-growing segment. They predominantly make GPUs for crypto mining for coins like Ethereum. In the last quarter, they revealed for the first time that crypto is around 10 per cent of their business. We think this segment will keep growing strongly. Technically, the stock chart also looks great. It broke out of a 12-month range to make a new all-time high.

WEBSITE: www.gritcapital.ca  
INSTAGRAM: @gritcapital