The marijuana industry is booming, but the cannabis stocks that have been leading the way are struggling to keep up. How will this affect the future of weed stocks?
The best marijuanas stocks 2021 reddit is a subreddit that discusses marijuana stocks. These stocks have been performing well despite the current economic uncertainty.
Conservative investors should steer clear of these marijuana stocks.
In my lifetime, I can’t recall a more turbulent stock market. That’s because we’re almost always confronted with a mini-black swan catastrophe.
What is the coronavirus’s next move? Of sure, the future of marijuana stocks has been affected by this uncertainty, but has it destroyed their prospects?
Not in my opinion, however there is a group of marijuana companies that conservative investors should definitely avoid right now. These are the most dangerous marijuana penny stocks.
Allow me to elaborate.
If we look back a few months, we’ll see that the stock market was flooded with optimism, including mine. Vaccination injections were being administered to arms, COVID-19 fatalities and severe illnesses were down, and it seemed that everything were returning to normal.
But that was before the phrase “Delta variation” entered our collective lexicon, thereby derailing all of the stock market’s upward momentum.
During times of economic uncertainty, the stock market is particularly punitive to more volatile sectors, as I’ve noted many times. And that’s precisely what we’re up against here: complete unpredictability.
According to the most recent U.S. employment report, I’m not alone in being optimistic about the summer’s possibilities. But then we saw a big miss on job creation, demonstrating the strength of COVID-19’s Delta version and its capacity to defy all of our optimistic forecasts. (Source: CNBC, September 3, 2021, “Jobs Report Disappoints – Only 235,000 Positions Added vs. Expectations of 720,000.”)
It’s worth emphasizing, though, that not everything is terrible. The Delta variety has definitely put a wrench in the works, but, as I previously said, we’ve seen a decrease in coronavirus fatalities and severe illnesses, particularly among the vaccinated.
That implies the achievements we achieved in terms of reopening the economy during the summer are likely to endure. Although some states and nations are considering reintroducing lockdowns, others, like as Denmark, have completely removed all pandemic-related restrictions. This is great news for everyone, but particularly for marijuana stock investors.
Investors in marijuana stocks have reason to be concerned that the current market is posing a danger to their holdings. Remember that when the epidemic first struck, marijuana stocks took a big blow, but then recovered quickly.
And, although I’m certain that the drop in marijuana stock prices won’t be as severe as it was when the COVID-19 virus initially emerged as a worldwide danger, it will nonetheless have an effect.
Which takes me back to my previous point: the effect will be seen most strongly among marijuana penny stocks.
Marijuana penny stocks have long been considered one of the most high-risk, high-reward trades in the stock market.
After all, the marijuana business is worth tens of billions of dollars, but only a small portion of that market is presently legal and operational.
So we have predictable company growth in the sense that we know it will happen someday (albeit the “when” is still unknown). The proper marijuana companies, many of which began out as cannabis penny stocks, have reaped enormous profits as a result of this predicted economic development.
However, at this time, marijuana penny stocks are the most likely to suffer. That’s because, as I said earlier, the stock market’s volatility during COVID-19 implies that investors will continue to seek for safer assets.
Instead, take a look at these marijuana stocks.
Pot stocks, with their propensity for wildly fluctuating prices due to a variety of reasons (politics, manufacturing, supply chain, sales, and so on), are far from safe haven investments. Pot penny stocks, at the very least, aren’t safe haven investments. They’re bets that aim for maximum profit at the expense of high danger.
Long-term marijuana investments, on the other hand, continue to seem promising.
StockCharts.com provided the chart.
Despite the market’s volatility, Innovative Industrial Properties Inc (NYSE:IIPR), a marijuana company that has long been at the top of my list, has experienced massive increases in the last year.
That’s because the business works in a very specific industry, leasing property to marijuana growers throughout the United States. That means Innovative Industrial Properties Inc is completely legal in the United States, with the ability to list its shares on a major U.S. stock exchange and access banking services unavailable to pure-play marijuana companies.
Long-term IIPR stock investors have made significant profits, and I think the business still has potential to expand as the United States continues to legalize marijuana in pieces.
Curaleaf Holdings Inc. is another marijuana stock that I like (CNSX:CURA, OTCMKTS:CURLF).
Despite COVID-19 causing havoc on the market, the business has demonstrated resiliency. Furthermore, CURLF stock, like IIPR stock, has a lot of potential to expand as the United States legalizes marijuana state by state.
Curaleaf Holdings Inc is also on track to become one of the first legal marijuana businesses to exceed $1.0 billion in annual sales, which is a significant achievement.
It’s worth mentioning that the coronavirus epidemic hasn’t harmed marijuana use in the least. In the same way that alcohol consumption rises during economic downturns, marijuana use rises as individuals attempt to cope with their dire circumstances in whatever way they can.
This, along with the growing legal marijuana industry, may boost CURLF stock’s long-term growth.
Expert Opinion
Marijuana stocks are, to some degree, in a tough situation right now. However, not everyone has the same difficulties.
Pot penny stocks are still potential short-term volatility bets (after all, if investors choose the proper marijuana penny stocks today, they’ll make the most money), but they’re riskier than ever.
Long-term marijuana stock bets like Innovative Industrial Properties Inc and Curaleaf Holdings Inc, on the other hand, continue to show tremendous potential and show no signs of slowing down, even in the midst of the epidemic.
The canopy growth stock is a marijuana stock that has experienced tremendous growth. Despite the economic uncertainty, these stocks are strong.
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