Could This Be the Catalyst Cannabis Stocks Desperately Need?
It's a tough time to be holding stocks, and it's even tougher if you have cannabis stocks in your portfolio. The entire sector has been in shambles as valuations are falling hard. Major cannabis producer Canopy Growth was worth more than $10 billion last year; right now, its valuation is struggling to stay above just $1 billion. The Horizons Marijuana Life Sciences ETF has crashed 64% in 12 months.
But the good news is that stocks in the cannabis industry can sometimes pop on news of legalization in a major market. Even though it may not necessarily mean every business will benefit from the development, it can help shine a light on the industry's promising growth potential and remind investors of the opportunities there.
That's what the industry desperately needs right now -- some sort of positive news to get investors bullish on the sector again. And it may not be long before it has that.
Source Fool.com
