The increase in trading interest around Christmas is giving the cannabis stock market a renewed push
As reported by CNBC on December 26, a Sant Clause Rally seems to be on fire now. The effect of this year’s calendar pushed both Nasdaq and S&P 500 to new highs that beat records. A Santa Claus Rally is known as a market anomaly that brings a spike in the stock market in general in the last five years of December and until the second day of January. Many reasons can be pointed for this market behavior, according to an analyst from The Cannabis Investor.
Starting with the increased optimism the accompanies the holiday season and Christmas bonuses on the line, an increase in retail buying can be seen. Also, to optimize taxes, some investors put more in the stock market. Also, low liquidity in general due to limited participation from institutional investments can push up the market. For the ETFMG Alternative Harvest ETF things are no looking that favorable, none of the big stocks as Canopy Growth, Cronos Group or Aphria Inc. had any increase. However, on Christmas Eve, Marijuana Business Daily reported 50% more sales in the average of recreational cannabis products in the week prior to Christmas.
With this increase in the sales numbers in states like Nevada, Washington, California, and Colorado in a range of 11% – 53%, and, according to Marijuana Business Daily, the increase is also due to people buying more to give away or for personal use during this season. These numbers might give a small boost to investors even though they seem to be skeptic yet to the idea of investing in cannabis business.