Last Monday, the Dow dropped 1,175 points in the course of the day, sending investors into a trading panic.
While the Dow plummeted, cannabis stocks held steady.
One analyst, Alan Brochstein, offered this summation of the day: “Cannabis stocks experienced some early weakness, following through from last week’s steep declines, but they reversed early, led by buying in Canada.”
While many other indices suffered huge hits, the Global Cannabis Stock Index began with an 8% loss, rebounded to +6% and eventually closed the day with a 1.5% loss. Seventy-five of the industry’s leading cannabis companies comprise the GCS Index.
The United States Marijuana Index, comprised of 15 of the industry’s leading cannabis stocks in the U.S., also finished the day with a small loss – 2.34% – but managed to close the week with a gain of 4.2%.
Meanwhile, Canadian cannabis stocks rode out the day in a similar trajectory, beginning the day with a 7% loss, rising to a 10% gain and settling at a 1.1% gain by the day’s end. And the North American Marijuana Index, Canadian weed stocks included, closed the week with a 2.1% gain.
Marijuana stocks in the USA and Canada have certainly had their own trajectories these past few months.
Thanks in part to California’s legalization of recreational pot at the beginning of the year, pot stocks rocketed in value – a gain of 205% – from November 1 to January 3, only to roller coaster their way through the rest of January. Since then, they’ve been pointing downward, but, future prospects for the industry remain strong. (For more information on the state of marijuana stocks, read Cannabis Stocks Still Strong for the Long Term, Despite Recent Losses.)
Two mitigating factors that may continue to challenge the growth of the industry and influence cannabis stocks are Attorney General Sessions’ “war on weed” in the U.S. and Canada’s announcement this past week that the nationwide legalization of recreational pot may be delayed beyond July 1.
Investors in cannabis stocks in 2018 took pause after hearing word from the Canadian parliament regarding the legalization of recreational marijuana use.
A televised Senate hearing in the Canadian parliament this past Tuesday revealed that the timeline for legalization in Canada was never conclusively July 1. In order for this to happen as has been expected by the public, the Senate would need to give its approval to the bill by the end of May.
Canadian Health Minister, Ginette Petitpas Taylor, commented “We still feel very confident that we can meet our goal of July 2018. No one ever said July 1, or I never said July 1. But our goal of meeting July 2018, for me, is still very much a realistic goal.”
The cannabis industry is no stranger to push back or delays from the dominant powers that be, namely government, but they continue to throw the cannabis stock market into a state of flux after such announcements.
In the midst of all the market flux of the past week, here are a few concrete takeaways – and good news – for pot stock investors.
Seeking marijuana stocks to buy? Know these companies with marijuana stocks trending up:
- Aphria – up 27.8%
- Canopy Growth Corp – up 15.2%
- Aurora Cannabis Inc – up 32.2%
- Cronos Group Inc – up 48.4%
- MedReleaf Corp – up 19.3%
- THC Biomed Intl – up 8.6%
- Zynerba Pharmaceuticals Inc – up 3.75%
- CannTrust Holdings Inc – up 2.15%
Companies with marijuana stocks trending down:
- 22nd Century Group – down 0.37%
- Cannabis Sativa Inc – down 11.75%
- GW Pharmaceuticals – down 5.3%
- India Globalization Capital – down 23.6%
- Scotts Miracle-Gro – down 1.5%