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Cannabis Stocks

Cannabis stocks, marijuana stocks, weed stocks, whatever you call them, they’ve been a rollercoaster ride since the first publicly traded cannabis company, Medical Marijuana Inc. (MJNA), started trading in 2009.

In the intervening decade-plus, we’ve seen frantic accumulation when political winds signal changes to cannabis’ legal status, which leads to rallies that can move the price of cannabis stocks by 10 or 20% in a single day.

It’s easy to see why. The global recreational cannabis market is expected to grow from around $20 billion in 2021 and 2022 to $130 billion in 2030, which is still just a fraction of what’s expected to be a $3 trillion total market for marijuana and related products (CBD, medicinal use, etc.). That’s better than a six-fold increase in less than a decade in recreational use alone and rivals growth rates unseen anywhere outside the best technology stocks.

And while that torrid pace of growth stirs up a frenzy of speculators any time the words “legal weed” are uttered by a politician, the market activity between those utterances has been a painful grind lower.

And that grind has followed a disappointingly common pattern.

Any significant effort toward legalization (medical marijuana, state-level votes, Canadian legalization, etc.) prompts a flurry of buying before the rubber meets the road and the grind begins again.

In December 2018, negotiators in the Senate and House reached an agreement on the Farm Bill that would eventually impact cannabis stocks.

Normally the result of a tug-of-war pitting conservative heartland agriculture interests vs. progressive coastal urbanites, and corporate farms vs. family farms, the Farm Bill legalized industrial hemp for the first time in decades, thanks to the pushing of then-Senate Majority Leader Mitch McConnell, who argued that there will be great economic benefits from legalizing the crop—and putting it under the purview of the U.S. Department of Agriculture rather than the Justice Department.

Given the rapidly accelerating sales and seemingly inevitable trend toward widespread legalization, you’d assume cannabis stocks would have exploded in the three and a half years since the Farm Bill passed … right? Wrong. In fact, shortly after the bill passed, cannabis stocks nosedived, losing more than 80% of their value in the ensuing 15 months, bottoming in March 2020 along with everything else at the outset of the pandemic. After rebounding with the broader market, the sector topped out in February of 2021 and has since fallen even further.

So, if every major legalization achievement has been a “buy the rumor, sell the news” event, how do you profitably invest in the best marijuana stocks?

Our Free Report, How to Invest in Marijuana Stocks, is an excellent place to start. In it, you’ll learn how to avoid the most common investing mistake novice cannabis investors make and the one factor that has allowed Cabot SX Cannabis Advisor (formerly Cabot Marijuana Advisor) to regularly outperform the marijuana sector index.

If you’re less interested in methodology and more interested in simply having the names of the best cannabis stocks regularly sent to your inbox, a subscription to Cabot Cannabis Investor will get you both the best marijuana stocks and the market timing to profitably trade them.

Cannabis Stocks Archives
The new House speaker has an oppositional record with cannabis. Here are two reasons that won’t torpedo cannabis stocks.
Cannabis rescheduling would release cannabis companies from the dreaded code 280E, and these 5 names have the most to gain.
With a new year on the horizon, we’re making three bold predictions about what 2024 has in store for cannabis investors.
Cannabis stocks have been trending lower all year, but I’m looking at 3 cannabis stock catalysts that could arrive sooner than you think.
Marijuana stocks are coming out of the woodwork. Here are four keys to finding the best marijuana stocks in an increasingly crowded field.
After a rough year for the industry, there are plenty of undervalued cannabis stocks out there. Here are four that I like right now.
Here’s a list of low-priced marijuana stocks. As marijuana becomes increasingly legal, it makes sense for investors to pay attention.
A big move may be coming for cannabis stocks, which could be an opportunity for short-term profit on the path to long-term sector growth.
Industry experts are calling for incremental progress towards cannabis legalization when lawmakers return from recess in September. Here’s how it could shape up.
Lawmakers’ return from holiday recess could put SAFE banking back in the news and set up a trading opportunity in cannabis stocks.
With the first month of 2024 in the books, cannabis stocks are trouncing the markets and have even more promising catalysts on the horizon.
Last week saw cannabis stocks spike higher on news out of Washington before selling off on more of the same. Here are 3 reasons they still look like a buy.
Cannabis stocks perked up at the end of last year before giving back those gains on a lack of federal action. Are cannabis stocks now undervalued?
With ongoing state-level developments and marijuana stocks trading at some of their lowest levels ever, there’s a contrarian case for averaging into cannabis stocks.
Prices are low and sentiment is negative, but there remain a number of promising bullish trends for cannabis stocks, especially at the state level.