Recreational and Medical Cannabis

Medical Marijuana has been legal in Canada since 1999. There are a wide range of conditions that it is used for. Not all insurance plans will pay for medical marijuana. Every insurance company has a different list of medical conditions that they will cover. In most cases, you need to submit a "Prior Authorization" form to the insurance company before claims will be paid.  Some medical conditions that have been approved include:

• Cancer (pain and nausea)
• Multiple Sclerosis (pain)
• Rheumatoid Arthritis (pain)
• HIV / AIDS
• Palliative Care
• Epilepsy (children only)
• Multiple Sclerosis (stiffness and involuntary muscle spasms) i

Currently all medical marijuana requires a doctor's prescription and must be ordered online.

 

The two main chemicals in Cannabis that have been studied are:

• Tetrahydrocannabinol (THC) - the chemical that makes you "high"
• Cannabidiol (CBD) - the chemical with medical applications

Most Medical Marijuana is primarily CBD. Most patients currently purchase it as an oil, though topical creams and capsules are also available.

 

Recreational Cannabis will soon be legal in Canada. The current anticipated date is October 17, 2018.

 

Once Cannabis is legal, Canadians (in most provinces) will be permitted to:

• Purchase fresh or dried cannabis, cannabis oil, plants and seeds.
• Possess up to 30 grams of dried legal cannabis or its equivalent in public.
• Share up to 30 grams (or its equivalent) of legal cannabis and legal cannabis products with other adults
• Cultivate up to four plants at home (four plants total per household). This option may not be available in condos and rental units.
• Prepare various cannabis products (such as edibles) at home for personal use, provided that no dangerous organic solvents are used in the process.

In Ontario, the legal age will be 19+ and it can only be smoked on Private Property. Note - Non-Smoking rules take precedence. Where it can be purchased has not yet been determined.

 

If you travel to the U.S., entry is at the sole discretion of the U.S. Customs and Border Protection officers on duty - and they have a lot of latitude to ask questions to determine the admissibility of a foreign national. U.S. immigration lawyers are already warning Canadians that they could be denied entry to the U.S. - or barred from the U.S. for life - if they admit to smoking cannabis to a border agent. The drug is still a prohibited substance under U.S. federal law, despite legalization in some U.S. states.

 

If you have additional questions (such as how does this affect the workplace or what may be covered on your health plan) and want to discuss this area further, give me a call.

Diversity in your investment portfolio

I will periodically be posting information that I think is of interest and that I have received.

 

Canadians who diversified their equity exposure and invested in US Equities in 2014 made a wise decision.  The S&P 500 is up 12% YTD while the S&P TSX has done roughly 6% (price only).  With 2015 around the corner this trend looks likely to continue.  The Canadian consumer remains highly leveraged, our housing market is overvalued and a slumping oil price means eastern provinces will be under pressure to pick up the slack from those in the west.  By contrast, the US housing market looks stable, unemployment levels continue to fall and as this week’s Muse explains, American consumers are in a better position to spend in 2015 than they have been for years.

Key Takeaways

Widespread spending

• ‘I don’t think there’s a single headwind for consumers, it’s all tailwinds blowing at different strengths’ said Mark Zandi, chief economist for Moody’s Analytics Inc.
• According to a Bloomberg survey, spending is anticipated to increase by 2.7% in 2015, compared to the 2.2% growth seen in the first three quarters of 2014
• ‘We don’t have all our eggs in one basket anymore where we’re just relying on the wealthy to drive spending’ said Ellen Zentner, a senior economist at Morgan Stanley

Broad-based Hiring

• The breadth of industries hiring last month was the most extensive since 1998, a strong sign that the expansion is having widespread benefits on the economy
• Weekly earnings adjusted for inflation climbed 0.9% on average last month, the biggest increase in six years
• Consumers’ incomes are forecast to grow 1.8% over the next 12 months, the most since 2008 according to a Thomson Reuters/U of Michigan consumer sentiment surve

Middle Class

• Research by Goldman Sachs economists shows that middle-income households spend the most on gasoline as a share of total household purchases
• Furniture stores, vehicle dealers, clothing outlets, restaurants and hotels are among the retailers that benefit the most from wage growth and accessible credit, according to Morgan Stanley
• ‘You’ve got your debt down to levels that are reasonable, your labor market conditions are making some really significant gains, so people are feeling much more comfortable and they’re willing to spend’ said Michael Carey, chief economist at Credit Agricole CIB.  Carey forecast a 2.9% increase in spending for 2015

LINK: http://www.bloomberg.com/news/2014-12-19/americans-seen-getting-groove-back-with-spending-burst-in-2015.html

While there are clearly many signs that the American consumer will help to propel the US economy in 2015, especially given the current exchange rate, prudent investors will be careful not to overexpose their portfolios to US stocks.  The unpredictable nature of the markets should be enough to remind investors to focus on their long-term goals and seek a reasonable growth rate. 

Happy Holidays,

Information provided by Great West Life