The index known as the North American Marijuana Index surpassed the growth of many of the stocks throughout the market this past Thursday, as news of the President’s trade war with China hit other industries quite hard. Because of the speculation that often comes into more traditional industries when big news events hit, many investors saw Thursday as quite a negative day for the market. This was not the case with Marijuana. The index managed to gain as much as almost 5% by the end of the day.
Other indexes such as the United States Marijuana Index climbed by as much as 5% as well with the Canadian index climbing around 4%. Trump has stated that China “has repeatedly engaged in practices to unfairly obtain America’s intellectual property.” Because of this news, many stocks went spiraling. The continuous rain on tariffs has in the past also caused an uproar in the stock market, creating wild swings throughout the past several months. Richard Falkenhall, senior currency strategist at SEB stated that “Any escalation in the trade war rhetoric would be more negative for China than the U.S. given the former’s relative dependency on trade, but for now, the markets are focused on the payrolls data.”
The stocks that benefited the most in the cannabis industry were Canopy Growth Corporation (TSX: WEED), with announcements of new developments in terms of acquisitions for the company. The CEO of Canopy recently stated that “This new partnership represents further validation that Canopy is the platform of choice in the cannabis sector. Canopy has an unmatched ability to collaborate with partners given our breadth of operational knowledge, technology, investment capital, and cultivation expertise.” The rest of the market has also been able to benefit from this partnership. Through joint innovation throughout such a small market currently, it seems as though the whole of the marijuana industry can benefit.
Another stock that was able to benefit in the market recently is that of Horizons Marijuana Life Sciences ETF (HMMJ.TO). The stock was able to rise as much as 5%, to close the day out above $15. The ETF, Evolve Marijuana (SEED) was also able to rise by around 5% by the end of the day.
One of the most exciting advancements throughout the market is the partnership between Constellation Brands (STZ) and Canopy Growth. The two have been working to partner up to produce new stores and distribution methods as Constellation has one of the largest distribution businesses for beer, wine, and spirits in the world. This deal at first may have shocked some, but as we move deeper into 2018, it seems as though the deal is only getting bigger. The deal has also sparked the notion that many other companies in the larger blue chip sector, are working to get involved in the lucrative industry that is cannabis. Through this, the list of stocks for the marijuana market has continued to grow by a large amount.
The news out of cannabis has also been extremely positive throughout the last year or so. With new legislation in place to help make the substance legal throughout the country, marijuana has conditioned to produce existing results as a groundbreaking industry.
The market for cannabis is extremely exciting for many, and has continued to break down the barriers of what can and cannot be on the stock market. As legalization throughout the country and the world continues to occur, the industry is only getting stronger. The future of cannabis is extremely bright, and only appears as though it can continue to grow as we move throughout the rest of 2018.
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