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BUSINESS Tuesday 3 sepTember 2019
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Should investors buy marijuana stocks?

Arizona State University dence and withdrawal
Sandra Woien symptoms with the long-
Associated Press term use of marijuana. It
Illinois recently became the can also lead to long-term
11th state to legalize mari- and adverse changes to
juana for recreational use. the brain. The American
As more states follow suit, Lung Association advises
legal cannabis spending against smoking marijuana
is expected to grow over due to the risks it poses for
200% from about US$9 bil- lung health. However, mar-
lion in 2017 to $31 billion in ijuana also has some health
2022. With these unparal- benefits. Even though mar-
leled increases in spending, ijuana is not recognized by
marijuana stocks, includ- the Federal Drug Adminis-
ing marijuana exchange- tration as a medicine, the
traded funds, with catchy National Institutes of Health
tickers such as YOLO, an recognizes chemicals de-
acronym for “you only live rived from the plant can
once,” are becoming more help increase appetite, de-
common. crease pain, inflammation
So should people add and nausea. The NIH also
these stocks to their portfo- acknowledges that such
lios? derivatives may be useful in
The rise of socially respon- In this Aug. 15, 2019, file photo, marijuana grows at an indoor cannabis farm in Gardena, Calif. treating certain mental ill-
sible investing Associated Press nesses and addictions and
As a business ethicist, I nition on what socially re- and benefit society in ways cheap and consistent en- some studies have shown it
know that socially respon- sponsible investing entails, that go above and beyond ergy source, unequivocally may be a weapon against
sible investing has become it goes beyond the funda- what companies are legal- contribute to air pollution opioid dependence.
more popular, especially mental view of Milton Fried- ly required to do.” and negatively impact hu- Clinical trials hold the prom-
with millennials. Socially re- man, an iconic economist, Socially responsible inves- man and environmental ise of finding more thera-
sponsible investments ex- who claimed “the business tors typically buy stocks health. peutic benefits and pos-
perienced a 38% increase of business is business” – in in companies that have The case of tobacco is simi- sible treatments.
between 2016 and 2018. other words, making mon- policies to mitigate climate lar. It is highly addictive and Medical marijuana stocks
At the beginning of 2018 ey or “profit.” change or support fair may seriously compromise So does owning marijuana
alone, $11.6 trillion was in- In addition to profit, so- trade, but may avoid com- a healthy and long life. stocks raise the same ethi-
vested in socially respon- cially responsible investing panies engaged in fossil fu- The case of marijuana cal issues as owning stocks
sible funds. This translates focuses on what is known els, tobacco, alcohol and Taking a view on marijuana in an alcohol or tobacco
into $1 out of $4 of all U.S. as the “triple bottom line.” arms production. is more complex. The sub- firm – or are they more like
invested funds. This means that companies Most people would agree stance is used both medi- pharmaceutical stocks?
Investors committed to be- also consider “people” and that such companies ulti- cally and recreationally. There are gray areas in so-
ing socially conscious have “planet,” as part of respon- mately cause more social Marijuana use can cause cially responsible investing.
more choices than ever sible business practices. and environmental harm harm, especially when Not all socially conscious in-
and can expect similar re- Scholar David Vogelde- than good. used at a young age. The vestors have the same val-
turns to traditional investors. fines socially responsible For instance, fossil fuels, National Institutes of Health ues, and not all companies
Moral basis for investing investing as “practices that while meeting the de- acknowledges that 30% create equal amounts of
While there is no set defi- improve the workplace mands for a relatively of users develop depen- good.q

Global stocks mixed after US and China increase tariffs

By JOE McDONALD and “The short-lived truce will 225 shed 0.4% to 20,620.19.
DAVID McHUGH probably provide limited Hong Kong’s Hang Seng
Associated Press relief,” said Zhu Huani of lost 0.4% to 25,626.55.
FRANKFURT, Germany (AP) Mizuho Bank in a report. Seoul’s Kospi ended 1 point
— European stock mar- “Businesses have become higher at 1,969.19 and Syd-
kets drifted higher Monday increasingly uncertain ney’s S&P-ASX 200 retreat-
while Asia was mixed after about future prospects, evi- ed 0.4% to 6,579.40.
the U.S. and China esca- denced by the pullback in New Zealand and Taiwan
lated their war over trade business investment amidst gained while Southeast
and technology with new growing concerns on Asia markets retreated.
tariff increases. growth.” On Sunday, the United
U.S. markets were closed The broad Europe STOXX States started charging 15%
for the Labor Day holiday, 600 rose 0.3 percent to tax on about $112 billion of
draining some of the en- 380.55, London’s FTSE 100 Chinese imports. China re-
ergy from global trading. rose 1.11% to 7,286.86 and sponded by charging taxes
Benchmarks in London, A woman looks at an electronic stock board of a securities firm France’s CAC 40 added of 10% and 5% on a list of
Paris and Shanghai ad- in Tokyo, Monday, Sept. 2, 2019. 0.2% to 5,487.66. Germa- American goods.
vanced. Tokyo and Hong Associated Press ny’s DAX was 0.1% higher Negotiators are due to
Kong declined. lars of goods than to previ- but analysts warn the fight at 11,949.22. meet this month in Wash-
Markets reacted less ous increases. over trade and technology In Asia, the Shanghai Com- ington but neither side has
strongly to the weekend Investors are hoping for is unlikely to be quickly re- posite Index gained 1.3% to given any sign it might offer
tariff hikes on billions of dol- progress in talks this month, solved. 2,924.11 while Tokyo’s Nikkei concessions. q