Here's Why Cannabis Stocks Have Been on a Roller Coaster This Month
The U.S. cannabis industry remains one of the most interesting investing opportunities today. Although the companies still operate in a technically illegal business, most U.S. states have legalized cannabis, at least on a medical basis, and over two-thirds of U.S. citizens are pro-legalization.
Those numbers make it seem as if federal prohibition will be repealed at some point. Yet while many had thought action would occur earlier this year, cannabis legalization measures have stalled in Congress. With hot money pouring into U.S. cannabis stocks after Democrats took control of Congress in January, that money has since grown impatient and left the space throughout the spring and summer. No wonder the AdvisorShares Pure US Cannabis ETF (NYSEMKT: MSOS), an ETF that owns most of the leading U.S. multistate operators (MSOs), is down 14.9% on the year and a stunning 42.6% from all-time highs set back in February.
But after a long slump, could these stocks be in for liftoff once again? Many cannabis stocks have surged this month, with MSOS up 14.6% just through the first two weeks of November.
Source Fool.com
