Is the Marijuana Market Building Toward a Major Rally?


2021-08-16 20:30:30 PROFIT


Positive Signs Building for Marijuana Industry & Pot Stocks The marijuana industry has been anything but predictable in 2021. We’ve seen rapid shifts in momentum due to mergers, legalization efforts (and roadblocks), COVID-19 lockdowns, COVID-19 vaccine rollouts, and more. In other words, it’s been a lot. But the signs, long-term at least, are very positive for marijuana stocks. The first reason for this is that COVID-19 and the related lockdowns and economic strains are bound to be sorted out eventually. While I may have been a bit overly optimistic at the beginning of the summer, before the Delta variant became everyone’s least favorite two words, there’s light at the end of the tunnel. Vaccination rates are high, hospitalization rates are lower than they were at the height of the pandemic, and deaths are down. So, even with the Delta variant, things are better (even if it sometimes doesn’t feel that way). Nevertheless, as I’ve written previously, few markets have been as heavily damaged as the marijuana market. There are a few reasons for that. The first is that, as an emergent sector, the marijuana industry is prone to volatility. In times of economic strife, investors seek out safe-haven investments and avoid highly volatile ones. That has been a huge detriment to pot-stock momentum. Next, we had the interruption of supply chains. While marijuana was considered an essential good in Canada, that didn’t stop many companies from shedding workers and closing down production at a number of sites in order to prevent the spread of COVID-19. What’s more, shipping and storage have been more difficult during the pandemic, which also impacted marijuana companies’ bottom lines. Another huge challenge was that, during the pandemic, it made sense that Congress would let the marijuana legalization issue fall somewhat to the wayside. After all, the famously ineffective branch of the U.S. government isn’t really able to deal with one thing at once, let alone multiple issues. This hurt some of the U.S. marijuana legalization momentum that built up during the presidential primaries (during which many Democratic Party candidates expressed unequivocal support for U.S. pot legalization). All those factors combined to impact the marijuana industry, and not for the better. Despite all these issues, the industry has managed to impress. Better yet, it looks poised to see even greater gains in the future. That’s because marijuana stocks remain some of the most promising—if not the most promising—equities available. Why? Because the marijuana industry continues to see impressive expansion. In the U.S., the push for federal pot legalization has slowed somewhat, but that hasn’t put a damper on the excitement surrounding many of the top U.S. pot stocks. In particular, Curaleaf Holdings Inc (CNSX:CURA, OTCMKTS:CURLF) and Innovative Industrial Properties Inc (NYSE:IIPR) have seen significant share-price growth over the past 12 months. Chart courtesy of IIPR stock has been especially impressive, more than doubling in value over the past year. Considering all the forces working against it (which I outlined above), that’s a noteworthy achievement. And what this tells us is that growth is still possible, even during some of the worst sets of circumstances. After all, a once-in-a-century pandemic isn’t something any company is prepared for, nor something it can effectively predict. This is especially detrimental to emergent industries, as I explained above, so it really has been a worst-case scenario in many respects. Given these conditions, Innovative Industrial Properties stock’s growth is a great indicator of future success in the marijuana industry and a sign of its ability to weather storms. What’s more, remember there was a massive overcorrection to marijuana stocks in the early stage of the pandemic. That happened across the stock market as panic took hold, but it was especially pronounced in the marijuana market. Now that the fears have subsided (even if lockdowns return, we all have a basic understanding of what that entails, and won’t again treat it as a “sky is falling” event), we’re seeing pot stocks begin to recuperate from their losses. Given that we’ve seen this play out before—the stock market sends share prices tanking, only to turn around and spur massive growth among marijuana stocks—the opportunity exists to invest on the upswing and see high returns in a short amount of time. But that’s a short-term play, and one I believe is myopic. That’s because the real value in the marijuana market lies in its future. Yes, the pandemic feels like it will go on forever, but we know that’s not true. It will pass. Like all troubling events in human history, it will come to an end, and on the other side, we can expect to see optimism and excitement in the stock market. The marijuana industry is one of the most exciting industries out there—even more so, considering that federal U.S. legalization isn’t quite around the corner. That means there’s still a good amount of time to invest in advance of what will surely come down the pike eventually That gives investors the opportunity to reap huge gains when nationwide American marijuana legalization finally lands. Analyst Take Resiliency is the word of the day for pot stocks. They’ve taken COVID-19’s worst blows and haven’t gone down for the count. As the pandemic fight nears its final rounds, it’s looking more and more like things are going marijuana stocks’ way. That’s because all the pre-pandemic momentum and potential are still there. Yes, they’ve been on the backburner during the pandemic, but once the pandemic subsides, we’ll see all that positivity return with a vengeance, likely sending pot stock prices soaring. Better yet, the marijuana market continues to have one of the best long-term outlooks of any industry, with marijuana stocks looking like they will be among the best-performing investments for years to come.
大麻行业和大麻库存的积极迹象 大麻行业在2021年是不可预测的。由于合并、合法化努力(和路障)、新冠肺炎封锁、新冠肺炎疫苗的推出等,我们看到了势头的快速转变。 换句话说,已经很多了。但至少从长期来看,这些迹象对大麻库存来说是非常积极的。 第一个原因是,新冠肺炎以及相关的封锁和经济压力最终肯定会得到解决。虽然在夏天开始的时候,在德尔塔变异毒株成为每个人最不喜欢的两个词之前,我可能有点过于乐观,但隧道尽头有光。 疫苗接种率高,住院率低于疫情最严重时,死亡率下降。所以,即使有了德尔塔变异毒株,情况也更好(即使有时感觉不是这样)。 然而,正如我之前写过的,很少有市场像大麻市场一样受到严重破坏。 这有几个原因。 首先,作为一个新兴行业,大麻行业容易波动。在经济动荡时期,投资者寻求避险投资,避开波动性很大的投资。这对锅股的势头是一个巨大的损害。 接下来,我们的供应链中断了。虽然大麻在加拿大被认为是一种基本商品,但这并没有阻止许多公司裁员并关闭一些工厂的生产,以防止新冠肺炎病毒的传播。 此外,在疫情期间,运输和储存更加困难,这也影响了大麻公司的底线。 另一个巨大的挑战是,在疫情期间,国会将大麻合法化问题搁置是有道理的。毕竟,美国政府这个出了名的效率低下的部门并不真正能够同时处理一件事,更不用说多个问题了。 这损害了美国在总统初选期间建立的大麻合法化势头(在此期间,许多民主党候选人明确表示支持美国大麻合法化)。 所有这些因素加在一起影响了大麻行业,而不是向好的方向发展。尽管存在这些问题,但该行业还是给人留下了深刻印象。更好的是,它看起来将在未来看到更大的收益。 这是因为大麻股票仍然是一些最有希望的--如果不是最有希望的话--股票。 为什么?因为大麻行业继续出现令人印象深刻的扩张。 在美国,联邦大麻合法化的努力有所放缓,但这并没有抑制围绕许多美国顶级大麻股的兴奋。 特别是Curaleaf Holdings Inc.(CNSX:CURA,OTCMKTS:CURLF)和Innovative Industrial Properties Inc.(NYSE:IIPR)在过去12个月里股价大幅增长。 图表由stockcharts.com提供 IIPR的股票尤其令人印象深刻,在过去的一年里价值翻了一番多。考虑到所有反对它的力量(我在上面概述了),这是一个值得注意的成就。 这告诉我们,即使在一些最糟糕的情况下,增长仍然是可能的。毕竟,百年一遇的流行病不是任何公司都能准备好的,也不是任何公司都能有效预测的。正如我在上面所解释的,这对新兴行业尤其不利,所以在许多方面都是最坏的情况。 鉴于这些情况,创新工业地产股票的增长是大麻行业未来成功的一个很好的指标,也是其抵御风暴能力的一个标志。 此外,请记住,在疫情的早期,大麻库存被过度校正。随着恐慌的蔓延,这种情况在整个股市都发生了,但在大麻市场尤其明显。 现在恐惧已经消退(即使封锁恢复,我们都对这意味着什么有了基本的理解,不会再次将其视为“天塌下来”的事件),我们看到大麻库存开始从损失中恢复过来。 鉴于我们以前见过这种情况--股市导致股价暴跌,但却扭转局面,刺激大麻股的大规模增长--存在投资上涨并在短时间内获得高回报的机会。 但这是一个短期的游戏,我认为是短视的。那是因为大麻市场的真正价值在于它的未来。 是的,这场流行病感觉会永远持续下去,但我们知道这不是真的。会过去的。像人类历史上所有令人不安的事件一样,它将结束,另一方面,我们可以期待看到股市的乐观和兴奋。 大麻行业是最令人兴奋的行业之一--考虑到美国联邦合法化还不太可能,情况就更糟了。这意味着在最终肯定会发生的事情之前,仍然有大量的时间来投资 当美国全国大麻合法化最终落地时,这给了投资者收获巨大收益的机会。 分析员采取 弹性是大麻股的一个词。 他们受到了新冠肺炎最严重的打击,还没有倒下。随着这场流行病斗争接近最后一轮,情况越来越像大麻库存的情况。 这是因为所有疫情前的势头和潜力都还在。是的,在疫情期间,他们一直处于次要地位,但一旦疫情消退,我们将看到所有的积极情绪卷土重来,可能会导致锅股价飙升。 更好的是,大麻市场继续是任何行业中最好的长期前景之一,大麻股票看起来将是未来几年表现最好的投资之一。