Why Pot Stocks Could Be Your Best Bear Market Buy
If you're not buying shares of companies that are likely to succeed in the long term during this (short-term) bear market, there's a good chance that fear of losing your money is getting the better of you. Of course, when your fear of losing money is getting in the way of making more in the future, it's a bit of a self-fulfilling prophecy, and preventing that outcome is one reason right now might be a brilliant time to start investing more heavily in beaten-down cannabis stocks.
That's right, even with the industry-tracking AdvisorShares Pure U.S. Cannabis ETF down by more than 66.5% compared to the market's decline of only 16.4% in the last 12 months, marijuana companies could still go on to flourish in the coming years, making the investors who are brave enough to buy shares during this bear market into richer versions of themselves. There are (at least) two big arguments in favor of buying pot stocks right now, so let's take a beat to understand both.
Especially if you like a bargain, there's no time like the present for finding cannabis stocks with cheap valuations. The Nasdaq's price-to-sales (P/S) ratio is currently 4.9. With that figure in mind, take a look at this chart of the marijuana industry's leading companies like Tilray Brands, (NASDAQ: TLRY) Cresco Labs, and Canopy Growth:
Source Fool.com
