How The Cannabis Industry Is Shifting For The Better
In the past six months, we have seen a major recovery in the stock market. While some stocks have not increased greatly, many marijuana stocks have. This includes U.S. pot stocks like Innovative Industrial Properties Inc. (IIPR Stock Report), Curaleaf Holdings Inc. (CURLF Stock Report) and Scotts Miracle-Gro Inc. (SMG Stock Report). In addition, many Canadian pot stocks like Valens Corp. (VLNCF Stock Report) and OrganiGram Holdings Inc. (OGI Stock Report) have also increased in value.
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When we entered 2020, things were looking quite good for cannabis stocks. After a dismal end of 2019, there was a renewed amount of bullish sentiment for pot stocks to succeed. But, as Covid took over, the entire stock market declined, including pot stocks. As mid-March approached, many marijuana stocks began to see big increases in value. Now, in October, things look like they may be picking up once again. If we look at the data, the majority of large-cap pot stocks have posted double-digit gains since the beginning of October. This is good news considering the NASDAQ has only posted around .5% in gains in that same period. While we don’t know the exact cause of these gains, we can begin to speculate on why they may have occurred.
How Will Marijuana Stocks Change After The Upcoming Election
As we all know, there is an election coming up in the U.S. On November 3rd, one of the most anticipated elections of the past fifty years will take place. While we already know Donald Trump’s opinion on cannabis, we have seen that Biden may be more positive about the cannabis industry. In the VP debates that took place in early October, we saw that the Biden-Harris ticket is quite in favor of a legal cannabis industry. While their support is not fully about pot stock growth, it could help push them forward. The pair have stated that they want to work on the social effect of legalizing cannabis. This includes expunging non-violent cannabis-related crimes from people’s records.
In addition, they have stated that they want to decriminalize possession of cannabis. While this is not fully legalizing cannabis, it is a major step in the right direction. Many cannabis investors have been hoping for this day for a long time. And, with Biden leading in almost all of the polls, we could see this day come soon. Now, the pair have not stated that they want to legalize marijuana federally. And even if they did, it would be hard to get that legislation through the various sectors of government. But, with a pro-pot attitude, there could be a lot of new opportunities in the near future.
How Have Marijuana Stocks Benefited From This Pandemic
As we have seen, the pandemic has had a very positive effect on marijuana stocks. Since mid-March, the gains that we have seen reflect a massive demand increase for cannabis in the U.S. This demand increase is reflected highly in the results that many leading pot stocks have produced. These companies have posted better than expected financial results, leading to increased investor positivity. In addition, we have seen that many pot stocks are working on making their business models more future proof.
This includes laying off unnecessary employees, cutting spending and increasing the amount of marijuana produced. All of this has added up to many pot stocks working on better business practices. In addition, we have seen several areas of the cannabis industry increase in value individually. This includes the ancillary businesses as well as the massive growers of marijuana. With more people than ever buying cannabis, more areas of the cannabis industry are succeeding in bigger numbers. While we can’t predict what will happen in the long term, the short term does look quite good for pot stocks.
Marijuana Stocks And The Future Of The Cannabis Industry
As stated before, it is very difficult to predict what will happen to the cannabis industry in the next few years. In the short term, however, there are some factors that could change the trajectory of pot stocks. This includes as mentioned prior, the upcoming election. Of course, Biden and Harris seem to be the most in favor of the cannabis industry. But, Trump has also been a solid proponent of overall stock market growth.
With that in mind, it looks like there is no slowing down on consumers buying cannabis in the short term. This means that we could see even more growth in the cannabis industry moving forward. For now, investors should continue to watch the market to make sure that there are no unexpected moves. But as we move forward, investors should continue to have hope for the future.
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