The cannabis stock market is still enjoying a bull run
The cannabis stock bull run began last year and hasn’t stopped yet. There have been slight dips from time to time, but, generally speaking, prices continue to rise and there are no indications that this will change anytime soon. Canopy Growth, GW Pharmaceuticals and Aurora Cannabis are all trading up a minimum of 55% since the start of the year and investors should begin to pay more attention to cannabis stocks now, before prices get out of control.
The US cannabis market is already huge and is going to get bigger. Roth Capital Partners points out that the industry is worth around $11 billion now and many analysts predict that it will reach at least $23 billion within three years. Eventually, that figure will grow to as much as $78 billion – and that could happen within a decade.
Decriminalization of cannabis in the US is coming. No one knows exactly when, but everyone knows that it’s going to happen. Over 70% of the US population supports marijuana reform at the federal level and this is going to force change. President Trump has also already stated that he is in favor of reform.
The STATES Act, which prohibits federal interference in states that legalize marijuana, would allow cannabis companies to gain much-needed access to capital. The act will free up a number of resources and banks and institutional investors that have been avoiding the industry will suddenly embrace it with everything they have.
Wall Street has begun to sit up and take notice of cannabis stocks. They were previously almost completely ignored, but many analysts are now covering them. Piper Jaffray, Cower and Jefferies are all onboard and as many as 13 analysts cover Canopy alone.
As the sentiment toward cannabis continues to change and become more favorable, there is going to be expanded awareness and adoption of cannabis stocks. This is going to drive the stock market higher very quickly and now is the best time to add cannabis stocks to a portfolio.