The Cannabis Bull Market Is Still Coming
On September 5th, I shared my views here that a cannabis bull market is about to start. Since then, the New Cannabis Ventures Global Cannabis Stock Index has rallied 1.4%. Not exactly a bull market yet! The S&P 500 is actually up about the same amount since then. The index is up just 3.7% year-to-date, which is worse than stocks and even cash:
That article from earlier this month got over 1800 page-views. While this pales in comparison to my articles published on Seeking Alpha and my newsletters shared on New Cannabis Ventures, it was the highest number of readers of an article on this personal blog:
The main source of readers to this blog is links from social media, primarily x.com, where I have a lot of followers who are interested in cannabis stocks. Still, it has blown away other posts about cannabis stocks that were promoted exactly the same way.
I think I did a good job of explaining my views in that piece. I also shared how to follow me more closely for those that care:
Since I published that piece, cannabis stocks did soar on 9/9, this past Monday, because Donald Trump signalled that he supports rescheduling. I think that people should have anticipated that he would say this, as his adversary, Ron DeSantis, is campaigning against the legalization for adult-use in Florida, where he is Governor and Trump resides. They have been pulling back but remain up since last Friday but down just a bit month-to-date. The S&P 500 is down in September too, but it has declined by a greater percentage.
I am following up today, Friday the 13th, because I want to reiterate that this formerly very cautious analyst of the sector for the past 11 years is now bullish. I certainly don't know everything, and I have no ability to predict the future with perfection, but I do have a strong sense that there is a fantastic opportunity due to 280E going away. For many reasons, investors, who were super-excited about the sector in 2021, when it was 10X the current price for the Global Cannabis Stock Index, and they were excited a bit too early about rescheduling, which is finally in process. 280E going away is not guaranteed, but it is highly probable. Of course, there are many other issues that impact the cannabis sector too.
The cannabis stocks are cheap to where they have traded historically and, in my view, compared to what they are worth, especially if things get better. Few seem to care right now. This is a great combination for potential investors!
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