Issues
As has been the case for the past decade, the fate of cannabis stocks lies largely in the hands of politicians.
Cannabis companies have been getting solid support from state-level politicians. Forty states now allow sales of medical cannabis.
Sure, they are permitting too many stores, and that is putting downward pressure on pricing. At some point, the market sorts that out. Prices will fall to a point where it is no longer that enticing to bring on new supply, yet companies will have gotten lean enough to produce profits. We are not there yet. But we will get there.
Cannabis companies have been getting solid support from state-level politicians. Forty states now allow sales of medical cannabis.
Sure, they are permitting too many stores, and that is putting downward pressure on pricing. At some point, the market sorts that out. Prices will fall to a point where it is no longer that enticing to bring on new supply, yet companies will have gotten lean enough to produce profits. We are not there yet. But we will get there.
Updates
These are dark days for cannabis investors, maybe the darkest ever.
AdvisorShares Pure U.S. Cannabis (MSOS), one of the key benchmark exchange-traded funds in the space, is down 85% in the past five years against market gains of 80%.
As has always been the case, the fate of cannabis stocks is much more about politicians than the leadership and results at cannabis companies.
AdvisorShares Pure U.S. Cannabis (MSOS), one of the key benchmark exchange-traded funds in the space, is down 85% in the past five years against market gains of 80%.
As has always been the case, the fate of cannabis stocks is much more about politicians than the leadership and results at cannabis companies.