In 2017, the buzz around marijuana stocks was absurd. Speculators and traders resulted in crazy volume and volatility, though eventually, things started to ease, and a lot of cannabis investors locked in profits and bolted. Slow trading volumes may come to an end and as we close in on nationwide legalization, and there is a chance that we may see another green rush between now and Canada Day 2018.
Though the buzz around the Canadian marijuana industry has calmed, we still believe high-quality marijuana growth companies like Emblem Corp. (TSX: EMC.V) and Aurora Cannabis, Inc. (TSX: ACB) have a ton of space to run from these levels, notwithstanding the direction these stocks have been going as of late.
Yes, marijuana stocks are still very much so speculative and not for the weak stomached, but there are huge long-term benefits for those who are willing to take the chance and can filter through all the noise and find companies with real competitive advantages.
As a whole, trading volumes have been slowing lately, which is why marijuana stocks have eased. Though, another reason is due to the continued uncertainty in regards to regulations and the federal government, which still labels cannabis as an illegal substance. The deadline was set for Canada Day 2018, but there’s still pressure from certain leaders.
There have been holds up previously, and it’s likely that more can happen in the future. Once cannabis is legalized, many experts feel that demand will hike way above supply for the first couple years that marijuana is legalized.
There is still a huge amount of growth that can still be anticipated from the Canadian cannabis stocks, and as volatility continues to ease, it may be the perfect time to take a position ahead of things getting excited over the next couple of years.
You shouldn’t be concerned about easing hype or the heightening fears of the general public, because when others are scared, you should be greedy, according to Warren Buffett.
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