2020 turned out to be an incredible year for cannabis stocks.
After falling sharply in 2019, the sector was hit hard again in the spring when COVID-19 ravaged global markets. Cannabis stocks and sentiment hit a multi-year low, and many cannabis investors threw in the towel.
It was a dark time for cannabis stocks. Take a look at the steep decline in 2019 and early 2020 in the chart below.
Great progress in terms of legalization was made for the Cannabis/Marijuana sector in 2020 that will. The 2020 elections resulted in a number of US states engaging in new Cannabis friendly policies and laws being approved by voters. This suggests a new rally in the Cannabis sector may be setting up in 2021 and beyond for traders. Our BAN – Best Asset Now – trading strategy is always looking out for the next sector to make a trade, and the Cannabis sector is certainly one we are keeping our eyes on! Make sure you sign up for my FREE webinar to find and trade the Best Assets Now just like me.
Weekly MJ Price Flag Setup
My research and I team believe the recent longer-term bottom in the MJ ETF, the Alternative Harvest ETF, suggests a broad bottom is setting up in the Cannabis/Marijuana sector. If this bottom in the Cannabis sector continues to profit support for the entire sector, then we may see price appreciation across many individual Cannabis stocks over the next 12+ months. Additionally, this price appreciation may prompt quite a bit of consolidation across the entire Cannabis/Marijuana sector.
The global use and demand for CBD & THC related products may continue to expand as medical and personal use expands across the US and into other nations. We are still near the infancy of understanding the true medicinal benefits of this all-natural product. A new upward price trend in this sector may prompt a global expansion/consolidation event where the Cannabis/Marijuana industry attempts to restructure into true global power companies. Continue reading "Will 2021 Be The Year For Cannabis Stocks?"→
Cannabis stocks have a huge event directly on the horizon. In fact, it's the most important event of the last 12 months and I expect it to send a certain group of cannabis stocks soaring.
On January 1 California will become the latest - and largest US state - to legalize recreational cannabis.
This is easily the most important event in the cannabis sector in the last 12 months. And I expect it to be a huge catalyst for cannabis stocks for two reasons.
1. Billions In New Sales:
California is already the largest cannabis market in the world - by a long shot. Its legal and illegal cannabis market did around $8 billion in sales in 2016 - with 75% of that from illegal sales. Recreational is expected to quickly chip into illegal sales and grow into a $4 billion annual market within a few years, from basically $0 today. That is a potential revenue and profit windfall for cannabis companies ready to capitalize. I expect this to be a strong tailwind for US cannabis stocks in general and particularly ones operating in California's high -growth market.
Opioid abuse has quickly grown into a major global epidemic.
While opioids can be great for pain relief, the down side is that they are highly addictive. Recent data shows that opioid abuse and addiction is killing tens of thousands of people every year in just the United States.
Overdose deaths caused by prescription opioids have quadrupled since 1999. From 1999 to 2015, more than 183,000 people have died in the U.S. from overdoses related to prescription opioids.
This is an alarming trend that has both patients and health care professionals asking - are we capable of providing a better alternative?
According to a young biotech located Australia the answer is yes - and the solution comes in the form of cannabis.
If this young cannabis biotech is correct, not only will patients benefit, early shareholders will be rewarded with huge gains.
Israel has long been a powerhouse in medical innovation.
The tiny country of 8.5 million has made some of the most important contributions to the global medical field in the last 50 years.
Today, Israel is unleashing its innovative medical industry on the cannabis industry.
According to a report from Reuters, there are more than 120 clinical cannabis trials in Israel at the beginning of 2017, more than any other country.
Foreign countries and firms are eager to license Israel cannabis medical patents. In the last year outside countries and companies have invested $100 million to license Israeli medical cannabis patents.
That number is expected to grow to more than $1 billion in the next two years - an increase of 1,000%.