By: Ross Silver, CEO

Obviously, the answer is complicated and for those of you wondering if I am writing this from a mental institution, you would be incorrect. I am still here and kicking, pulse still intact while questions of mental acuity remain. In an event, the point of all this gibberish is the correlation between interest rates (the jellyfish), in particular the yield curve and its shape and equities (the shrimp). 

Per an article on CNBC.com, “When the yield on the 10-year Treasury note earlier this year fell at a breakneck speed from 2.75% to 1.6% over six months, it triggered a host of alarms across Wall Street. The plunge was so severe that it sent the yield on the 10-year note under that of the 3-month bill and 2-year note, a rare phenomenon known as “inversion.”

Though the inversion between the 10-year and 2-year proved short-lived, the yield on the 3-month bill held above the 10-year for months. The spread widened into positive territory earlier in October for the first time since July.

Investors usually demand higher interest payments for agreeing to lend Uncle Sam money over longer time periods, so deviations from the status quo are thought to be reliable, though not perfect, recession predictors. Still, analysis shows there is often a significant lag before a recession hits and an economic downturn ensues.

Recessions are almost always preceded by a steepening of the yield curve, though not every instance of yield curve steepening leads to an economic downturn. Looking at the inversions of the US curve since 1978, a re-steepening (un-inverting) of the curve seems to occur during (1980, 1981) or preceding US recessions (1990, 2001, 2007). To me it sure looks like the yield curve is steepening and as such equities as a whole may be in their final inning of this amazing 10 year bull market we have experienced. With that said perhaps the yield curve is steepening as a result of growth and general economic health. Which is it? I think we will find out in 2020, be prepared for some volatility.

The Silver older boys are in basketball currently and they are having a lot of fun. I coach both of their teams which I love. My oldest is in 2nd grade and he is still learning that dribbling is necessary and his jump shot looks more like a heave than a shot but that heave goes into the basket. We are working on shooting and dribbling but his natural athleticism makes him a standout in the league. My kindergartner is also learning the nuances of the game and while he is still learning he is pretty dominant in his kindergarten league which features occasional passes and dribbling. Ski and snowboarding is up next for them and I have them enrolled in a weekend ski/snowboard class. 2032 Olympics here we come ☺

My daughter is going to get on skis for the first time this season and she is the most agile of the Silver pack. I expect her to be acing double black diamond runs by the end of the ski season. My youngest will be on the sled this winter and I fear he may ditch the sled for a snowboard before the season is over given he has no fear, he is 2 years old.

GB Sciences, Inc. (OTCQB: GBLX) (“The Company”) is a diverse cannabis company, focused on standardized cultivation and production methods; as well as biopharmaceutical research and development. The Company’s goal is creating safe, standardized, pharmaceutical-grade, cannabinoid therapies that target a variety of medical conditions. 

The Company is dedicated to the discovery and development of important new cannabis–based medications. To date the company has achieved some impressive results because of their relentless attention to pharmaceutical methods and standards, enhanced by their culture of scientific innovation.

The Company’s two-pronged growth strategy is as follows: 

To continue to explore the leading edge of biomedical research for the development of cannabis-based therapies; and

To take advantage of the recreational market for cannabis in Nevada.

According to Grand View Research, the global legal marijuana market size was estimated at USD 13.8 billion in 2018 and is projected to expand at a CAGR of 23.9% by 2025. Growing legalization in various countries is primarily driving the market. Additionally, the rising adoption of cannabis as a medical product for treating conditions, such as Parkinson’s disease, cancer, arthritis, and neurological disorders is expected to fuel revenue growth in the future. Furthermore, the increasing demand for pain management therapies due to chronic pain and significant side effects associated with opioid usage are expected to drive the demand for medical cannabis, which has proved to be a potent product for chronic pain management.

GB Sciences has several advantages over both pharmaceutical companies and academic researchers when it comes to the discovery and validation of new drug formulations from cannabis-derived compounds. Because GB Sciences holds licenses to grow; extract and sell cannabis under state-regulated programs, they can produce and use their own standardized cannabis materials in their products and in their research program. The Company’s state of the art, 28,000 square-foot cultivation lab can support approximately 7200 cannabis plants without sacrificing any quality or therapeutic efficacy. GB Sciences is a company that is informed by science, but inspired by patients.