How 2020 Has Affected the Cannabis Industry
Early in the year when Covid began to hit the U.S., world markets took a large dip. While many investors believed that major pot stocks like KushCo Holdings Inc. (KSHB Stock Report) and Planet 13 Holdings Inc. (PLNHF Stock Report) would be affected, the effect was the opposite. Covid helped to show that demand for marijuana was greater than ever before. This is attributed to Covid leaving more people at home than in previous years. With more people at home, more people were consuming marijuana.
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That trend has stayed in the cannabis industry for quite some time. Now, major marijuana producers like Aurora Cannabis Inc. (ACB Stock Report) and HEXO Corp. (HEXO Stock Report) have begun to show greater demand for cannabis products. Although this trend may not last forever, in the short term it has proven to be quite fruitful for many leading marijuana stocks. In addition, several changes to the market itself have impacted cannabis stocks in a positive way. This includes legislative changes in the U.S. as well as the shift of public opinion. With that, let’s take a closer look at how to invest in the current state of marijuana stocks.
Covid has a Major Role Amongst Marijuana Stocks
As mentioned above, the effects of Covid have largely been felt in a positive way in the cannabis industry. This is of course, in states where marijuana is legal either medicinally or recreationally. During Covid, these states have deemed marijuana dispensaries to be essential businesses. This means that more people than ever have access to cannabis if they so choose. In addition, many cannabis companies have moved into products that align with the current times. This includes single-use devices to help curb sharing during the pandemic. On top of this, many cannabis companies have adapted the use of technological advancements such as the ability to order online or purchase cannabis for pickup.
Overall, it seems as though the cannabis industry has been able to adapt to the effects of Covid quite well. Although most industries have had trouble adapting to Covid, marijuana has fared very positively. This means that we could continue to see this positivity effect marijuana stocks into the near future. It’s also worth mentioning that Covid has made predicting anything about cannabis stocks, very difficult. With that in mind, investors should always be watching the industry to see what changes are occurring.
Consumers Are Shaping the Future Of Pot Stocks
Cannabis dispensaries are at the forefront of the cannabis industry. These businesses are the most forward-facing aspects of marijuana stocks, and therefore have a big role in the industry at large. MSOs or multi-state operators like Harvest Health and Recreation Inc. (HRVSF Stock Report), have worked to model dispensaries in a way that is Covid safe. This includes both protecting the employees that work there as well as the consumers.
Many consumers have turned to pick up or delivery services to get their cannabis. All of these changes add up to a new way that the cannabis industry could be going in the near future. If anything, Covid has proven that the cannabis industry is far more resilient than we may have thought. For that reason, investors should stay on their toes by watching the news and reading all they can.
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