For those that have noticed cannabis stocks have been plummeting the past couple of weeks. “Insiders” allege via many mainstream news outlets that the market is hesitant as US federal legislation concerning legalization seems to be slowing or may not pass. For me cannabis stocks being down is a good thing?
Sorry if you bought high and have lost a lot. I empathize with your loss. I entered as prices were low on a few stocks and I am looking to grab more, I understand the market is high risk right now. I like the analysis posted by Nancy Gondo on Investors.com… Stocks are coming back down to test a key support line… Now if they find support and stage a solid rebound off the 10 week moving average, that could set up a chance for investors to buy or add shares. However, keep in mind: Market risk is high right now.
I am not looking at individual cannabis companies or companies that only deal with cannabis green on green. Just like a REIT, a real estate investment trust is a fund to invest in the market of properties (not just one), there are ETF funds that deal with cannabis as well.
Yolo (Advisor Shares Pure Cannabis) is an ETF. Not only is it cannabis they invest in, but also agriculture, biotech, real estate, and big pharma. Yolo has seen some ups and downs. As of Friday Yolo was up 39% this year after gaining 42% last year according to Investor.com.
The fact that Canada is the largest opportunity and marijuana investment has remained stable. Canadian stocks count for 80% of the 25-stock portfolio relating to cannabis. Consumer staples are 64% of this market. We recently have seen a merger in Canada that affects some of the major companies in Canada.
Aphiria and Tilray have joined forces to create one cannabis company. I appreciate Tilray as an investment, because not only are they involved in cannabis they own Manitoba Harvest company. We have been buying their granola for years. I am looking at how these companies price per share is projecting to see if I will wait it out. Friends teaching me, and they remind me ,”do not day trade shit”. Do your research then buy and hold!