The year of 2018 has been quite topsy-turvy for the world of cannabis with a series of positive and negative news entering the space. With a majority of the negative information coming from speculation and uncertainty, the rest of the year and this month especially could help to turn the cannabis market around to where investors and researchers see it going in the near future.
Many stocks in the market have been reported to be on the road to corrections in the past few months. Because of this, April has helped to show where the market may be able to go in the near future. The month of April also provided a short glimpse at what could occur in the future of the cannabis industry, but marijuana stocks quickly fell short once more amidst new speculative news in the industry.
Many investors are wondering if May could be the positive month for cannabis that we’re all waiting for, and it does seem likely, but possibly not to the degree that some think. Markets take time to grow to their full potentials and the road to that can often take time. The month of May could show a new light in the industry as more and more individuals are becoming comfortable with the idea of legal cannabis.
April was a large month for the world of cannabis as a large amount of news hit the industry. The first big piece of news in April came from President Trump’s support of states’ rights to legalize cannabis at their disposal. This was big news as prior to this, it was difficult to see where the federal government was going with the idea of legal marijuana. Cory Gardner, the senator from Colorado who helped to change Trump’s sentiment stated that “since the campaign, President Trump has consistently supported states’ rights to decide for themselves on how best to approach marijuana.” Gardner helped to push Trump to show his public support for cannabis by blocking a nomination, resulting in Trump being forced to meet with him to discuss this. Gardner further stated that “I received a commitment from the President that the Department of Justice’s rescission of the Cole memo will not impact Colorado’s legal marijuana industry,” added Gardner. “Furthermore, President Trump has assured me that he will support a federalism-based legislative solution to fix this states’ rights issue once and for all.”
The news of this was extremely unexpected and caused the price increase in many stocks across the industry. After this news was dropped and in more recent news, John Boehner announced that he would be supporting the marijuana industry. This was a major shift as his whole time as Speaker of the House was spent in opposition to the cannabis world. With many of these new opinions coming into the space regarding positivity in the marijuana sector from individuals who otherwise would not, the market has been soaring in the big picture.
More news has come into the market showing increased positivity that has led to the increase of prices in the space. The cannabis industry is still very much in its infant stages which helps to explain why the fluctuations in pricing happens too frequently. The hopes are high that the next few years will continue to stabilize the market so that it can begin to represent the true nature of cannabis as an industry. If the market is able to reach its full potential in the coming years, more and more investments will continue to pour into the space, but only time will tell.
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