Marijuana stocks are among the most explosive investments considering the huge volatility in the pot industry. Marijuana index, which tracks leading cannabis stocks operating in the United States and Canada, continues making substantial sideways moves over the last two quarters.
The index rose from 111 points at the beginning of final quarter of last year to the all-time high of 360 points at the beginning of the year. The marijuana index closed the latest session around 248 points, down sharply from its all-time high.
The emerging marijuana index has been experiencing new developments each day, adding to the volatility in cannabis stock prices. The market pundits are expecting a massive boom for the emerging industry, supported by increasing prospects for cannabis legalization in Canada and North America.
President Trump recently announced a deal with Colorado Senator Corey Gardner, to permit states to decide on how to regulate cannabis. The Colorado Republican Senator said, “President Trump has assured me that he will support a federalism-based legislative solution to fix this states’ rights issue once and for all.”
Market reports are suggesting double-digit compound annual growth rate for cannabis industry in the following five years.
All the U.S. states have allowed the use of medical marijuana, and almost nine states have been allowing the use of recreational marijuana. The prospect for an increase in recreational marijuana markets has been strengthening trader’s confidence for the potential boom in the industry.
Marijuana companies are rapidly expanding their foot-prints in several U.S. states including California Maine, Massachusetts, and Nevada to capitalize on increasing demand.
GreenWave Advisors believe that improving business dynamics in some states and the legalization of recreational marijuana could double cannabis product sales this year. Gallop poll has also indicated that the number of Americans favoring legalizing marijuana reached its peak since 1969.
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