Tag: Cannabis ETFs

Own Cannabis Stocks For Less Than $20

Posted on by Ian Cooper

The broad market is still wobbly, with inflation showing no signs of cooling.

Not helping, consumer prices soared 9.1% in June, year over year – its fastest pace since 1981, and well above expectations for 8.8%.

According to CNBC, “Excluding volatile food and energy prices, so-called core CPI increased 5.9%, compared to the 5.7% estimate. On a monthly basis, headline CPI rose 1.3% and core CPI was up 0.7%, compared to respective estimates of 1.1% and 0.5%.”

“The breadth of the price gains shows how rising costs have seeped into nearly every corner of the economy. Grocery prices have jumped 12.2% compared with a year ago, the steepest such climb since 1979. Rents have risen 5.8%, the most since 1986. New car prices have increased 11.4% from a year earlier. And average airline fares, one of the few items to post a price decline in June, are nevertheless up 34% from a year earlier,” added the Associated Press.

Hopefully, inflation is starting to peak, but it’s a tough call at this point.

The latest numbers could force the Federal Reserve to hike rates another 75 basis points, which then runs the risk of the central bank overshooting, potentially pushing the U.S. economy closer to a recession.

Thankfully, there are some bright spots in the market.

The cannabis sector happens to be one of them.

In fact, the sector, as measured by the Advisor Shares Pure US Cannabis ETF moved slightly higher from a low of $10.08 to a recent high of $10.87 over the last week.

That’s happening for a few reasons. Continue reading "Own Cannabis Stocks For Less Than $20" →

Marijuana ETFs Aren't Too 'High' Just Yet

Posted on by Matt Thalman

With Canada set to legalize the recreational use of marijuana on October 17th, marijuana-related stocks and thus marijuana ETFs built around these equities have been on the rise. Many investors believe the marijuana industry will the next big growth industry since the drug has never been legal, but known to be rather popular with those looking to relax. Not only have individual investors been looking to the industry as a way to grow their wealth, but the alcohol industry has recently shown serious interest in the industry.

In August we saw Constellation Brands (STZ) increase its stake in Canopy Growth (CGC), we saw Molson Coors (TAP) partner up with Hydropothecary Corp. (HEXO) and there were reports that Tilray (TLRY) was in talks with Diageo (DEO). The rumors that Diageo and recently IPO’d Tilray where in talks has helped TLRY jump more than 100% since going public in mid-July of this year. While the moves from TLRY, HEXO, and CGC have all been astonishing in the past few months, the fact remains that the industry as a whole can still go higher in the future.

When marijuana became legal in Colorado and then California, the industry experienced a significant increase in demand literally overnight. That demand is once again going to jump on October 17th when Canada becomes legal. Furthermore, with the trend appearing to be taking hold not only around the country but the world, it's not hard to see how within maybe the next five to ten years from now, some of the marijuana stocks will be as big as the top alcohol companies.

But, that is where the problem rests. Trying to determine today, which companies are going to dominate the marijuana market in the coming years is not only a daunting task but perhaps more like gambling than investing.

Luckily though, we have a few ETFs that you can pick from today. Continue reading "Marijuana ETFs Aren't Too 'High' Just Yet" →