Marijuana Stock Run in May
Pot bulls have been waiting all year for the marijuana industry to turn around. Following the marijuana stock run that we saw many companies enjoy in May, it finally seems like the recovery has arrived.
So, what does that mean for the marijuana forecast?
All year, I’ve been advocating that marijuana bulls be on the lookout for companies that were performing the worst during the marijuana downturn.
Why? Because those companies would offer the best potential value when the marijuana recovery eventually landed.
And now we seem to be in the midst of that recovery, with some of the hardest-hit pot stocks during the downturn now being some of the top performers in May.
Which brings us to the marijuana forecast for the remainder of the year.
Marijuana Forecast 2018
We’ve long been waiting for the big marijuana breakout.
Ever since the sector took a huge hit in January and continued to fall in the months that followed, I’ve predicted that, by the summer, the industry would turn around.
With those summer months fast approaching, it appears that investors have again warmed to the marijuana industry and that the recovery has arrived.
You see, with Canadian marijuana legalization right around the corner, there’s going to be a lot of hype surrounding the cannabis industry.
The way I see this playing out is a massive sector-wide run in the lead-up to legalization, followed by a correction, and then steady gains to close out the year.
In my view, that makes now one of the better times for investors to enter the market.
Right now, you have the ability to take advantage of the reduced share prices that were a result of the correction, while not being exposed to the bottom of the downturn.
Instead, investors will likely be able to see strong gains for the next few months while Canadian marijuana legalization approaches.
For those looking for a short-term marijuana forecast, getting in now and dumping stocks at their heights in the summer could be a very strong play.
For those looking to play the stocks long, buying now and holding is a great way to put some stocks in your portfolio with serious potential to be some of the strongest growers for years to come.
In both instances, investors have a good number of options.
In terms of picking the best marijuana stocks, we’ll be going over my favorites as the summer months drag on, but I’d put Canopy Growth Corp (OTCMKTS:TWMJF, TSE:WEED) among the top picks.
Canopy Growth stock is about to be listed on the New York Stock Exchange (NYSE), making it only the second pure-play marijuana stock to list on an internationally renowned stock market.
What this means is that Canopy Growth is perhaps better situated than any other company in the legal marijuana industry to be the target of international investment, due to people’s trust in the NYSE.
Of course, it does mean that the company will receive a strong bit of hype that will lead to a volatile performance in the coming months.
I foresee Canopy Growth stock having a bit of a roller-coaster ride in the coming months, but, long term, it is by far one of the most well-positioned pot stocks.
It seems that the end of the marijuana correction is here.
While there’s no certainty with what’s to follow, looking back at 2017, a similar trajectory emerged, with the fall months proving to be some of the best that the sector had ever witnessed.
I believe that this summer could see a similar run. While it will be volatile and there will be setbacks along the way, the marijuana forecast 2018 appears bright.