3 Cannabis Stocks to Avoid Like the Plague for the Second Half of 2020
For much of the past half-decade, cannabis stocks have been among the hottest investments on Wall Street. With Canada becoming the first industrialized country in the modern era to green light adult-use cannabis, and two-thirds of U.S. states legalizing weed in some capacity, the door appeared to be wide open for pot stocks to thrive and snag the tens of billions of dollars in cannabis sales conducted in the black market each year.
However, sentiment shifted in a big way beginning in April 2019. Over the trailing 15-month period, most marijuana stocks have lost in excess of 50% of their value. Persistent regulatory-based supply issues throughout Canada, high U.S. tax rates on legal products, and financing concerns, have weighed on pot stock investors.
While there's no question that this is an industry that's here to stay (which means there will be winners), there are a trio of cannabis stocks that investors would be wise to avoid like the plague for the second half of 2020.
Source Fool.com
