How COVID is Positively Affecting the Cannabis Industry In 2020
The Covid-19 pandemic has been an awful and tragic illness that the world has had to face this year. With its devastating impacts across borders, few would think that there would be any positives to this situation. But, during this time, more people than ever have been confined to their homes. This means that the demand for marijuana has shot up in recent months. This demand increase has led to many marijuana stocks showing better than expected financial results for the past few quarters. In addition, the cannabis industry has been able to grow at a substantial level during this time.
In a new paper that came out at the end of July has helped to illustrate just how much marijuana stocks are growing. In addition to cannabis stocks seeing record highs, employment in the cannabis industry has also shot up dramatically. After March, sales of cannabis quickly began to shoot up. With pot stocks to watch showing low prices, things quickly turned around. Now, only a few months later, we are seeing consistent gains amongst many of the leading marijuana stocks to watch. With that in mind, let’s take a closer look at how the cannabis industry is changing right now.
What Has Happened With Marijuana Stocks and the Cannabis Industry So Far In 2020?
Leading marijuana stocks like Green Thumb Industries Inc. (OTC:GTBIF) and Canopy Growth Corp. (NYSE:CGC), have reported incredible gains in the past few months. Since March, the former has seen its stock shoot up by as much as 220%. And while this massive growth may be unsustainable, it does seem as though this growth will continue into the future. In a white paper put out by researchers, the numbers showed that the cannabis industry is headed in an upward trajectory in the next few months.
The study showed that since Mid-March, sales for cannabis have shot up on average by as much as 40% over the year prior. In addition, new research is coming out showing that cannabis could be a potent way to cope with some symptoms of Covid-19 such as pain and inflammation. Although these are not alone reasons for the cannabis industry to grow, it is promising information for the future of the marketplace.
What’s Next For The Cannabis Industry
As we continue to watch marijuana stocks grow, there are a few things we can do as investors. For one, we can continue to track the news to see how it will affect certain pot stocks. In the long term, it does look like the cannabis industry has nowhere to go but up. In addition, investors expect demand for marijuana to continue rising into the next few months and beyond.
As we approach the end of this year, investors should also be aware of how the section will affect the cannabis industry. While there are only two outcomes, both could have adverse or positive affects on marijuana stocks and the cannabis industry. All of this considered, the growth of marijuana stocks cannot be ignored. Rather, all we can do is watch the industry and hope it continues into the near and distant future.