As we entered into 2020, marijuana stocks looked like they were on the up and up. Soon after as the coronavirus took over world markets, it began to look like things were not so great for the cannabis industry. But, slowly as markets began to stabilize, cannabis stocks began to as well. Now only a few months later, we are witnessing a large increase in demand, reshape the way that the cannabis industry is functioning. In addition, with the election coming up at the end of this year, it seems as though we could be headed for an even brighter future for marijuana stocks.
Because of the massive future potential that exists for cannabis stocks, many investors are just now getting into the industry. This means that there is more support than ever for the future of marijuana stocks. But, as the cannabis industry has been around for only a few years at this point, it seems as though there are some things we can look for heading into the near future. But, all in all, it appears as though the prices for major cannabis stocks remain low at the current point in time. This means that now could be the time to take a closer look at some marijuana stocks to watch.
What Factors are in Favor of Cannabis Industry Growth
As we turned the corner from 2019 into 2020, we saw a lot of issues in the cannabis industry that needed addressing. These issues were everything from lower supply amounts all the way to high taxation and more. But with the coronavirus, higher demand than usual has helped to reframe the cannabis industry in a way that could help its future. Many companies have since begun to report quarterly earnings with much higher profits than expected. In addition, many believe that this demand will only continue to go up moving forward. As stated before, 2020 is also an election year which could be huge for cannabis stocks.
If states in the U.S. choose to legalize cannabis, we will undoubtedly see an unprecedented amount of growth moving forward. To our north, we saw Canada successfully launch its cannabis 2.0 laws, allowing derivative products to be produced and sold within the country. This was a major step forward for the industry and only helped to move things along. As we move forward, investors should watch U.S. banking laws to see if things change. Shifting U.S. banking laws would be one of the largest steps for the cannabis industry to take in the U.S. Moving forward, the hopes are that this demand can only increase market-wide.
What Can We Expect in the Next Few Months
It is difficult to predict what will occur in the next few weeks or months for that matter. Because of the unpredictability of the coronavirus, it seems as though the future is generally an uncertainty. But, new laws going into place, shifting market demand, and increasing positive sentiment from the public will all help to push the industry in the right direction.
Investors should continue to watch for these factors to help make an educated decision as to which marijuana stocks are worth watching. For now, however, it is extremely important to stay up to date on the news and the happenings of the cannabis industry. With that in mind, finding the right marijuana stocks to watch should be easier than previously imagined.
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