Stocks in the cannabis industry have been seeing massive increases in value over the course of the past several years. One of the most promising parts of the industry has been the Canadian market and its impending legislation that will be voted on this summer. This sector of the industry has the most promise of changing the entire paradigm of the market in a short period of time.
Canada currently has as much as 32 licensed producers of cannabis within the country, with more on the way. With the largest companies in the cannabis world coming out of Canada, it seems as though they are changing the way that the industry works for the better.
Since the Canadian elections back at the end of 2015, the Canadian market has increased the Cannabis Index by as much as 700%. This is a massive increase and shows not only the potential of the market but the amount of support coming from the space overall. The growing support base has been one of the largest and most important catalysts to change in the sector.
In terms of U.S. cannabis stocks, the market has not been as fruitful in the past year or so. This has not been a product of any issue within the industry, but rather the legislative difficulties that the market has run in to over the past several years. Back in mid-April when Senator Cory Booker announced that there was a new agreement between him and President Trump regarding the states right to choose whether or not cannabis should be legal, the market has increased quite dramatically. Jeff Sessions, the Attorney General of the U.S. has been one of the largest opponents to the industries growth, having pledged to continue the failing War on Drugs that has existed for some time now. Cannabis in the U.S. is still federally illegal which means that companies cannot bank with traditional financiers as well as having a generally tough time running their businesses. With a new sentiment hitting the government of support from the public, it seems as though the industry on cannabis in the U.S. could be drastically changing in the coming year or so.
The industry has seen four stocks come to prominence over the past year since late 2016. Those businesses are mostly Canadian including Aurora Cannabis, Aphria, Canopy Growth and the Cronos Group. These are considered at this point to be at the top of the market as well as being the largest companies in the industry overall. The performance of these companies has been quite solid after the issues with Trump and Gardner were dissolved. Since that point, many individuals have seen the promise of legal cannabis coming back into play throughout the country. The potential within the cannabis market in Canada is quite drastic, but this is not to downplay that of the U.S. market. The U.S. market some say has the most potential to grow given the sheer population and popular notion that cannabis should be legalized.
The market on cannabis is still very much in the early stages of growth, which means that the coming years will be extremely important to seeing how this industry will develop. As more legislation is made to reflect the wants and needs of the population, the hopes are that the industry will begin to move toward reaching its full potential in the near to not too distant future. Only time will tell how this growing industry will continue on its path to being one of the larger markets in the world.
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