Marijuana Stocks in 2019
Marijuana stocks in 2019 have so far enjoyed very strong performances.
While the year has been off to a great start—primarily motivated by great sales figures in Canada now that recreational marijuana is legal in that country—there are two key events that could see marijuana stocks in 2019 soar even higher.
Seen on the stock chart below are five of my top pot stocks: Canopy Growth Corp (NYSE:CGC) in black, Aurora Cannabis Inc (NYSE:ACB) in blue, Cronos Group Inc (NASDAQ:CRON) in red, Hexo Corp (NYSEAMERICAN:HEXO) in green, and OrganiGram Holdings Inc (OTCMKTS:OGRMF, CVE:OGI) in pink.
Their gains range from 59% to 128% in two short months. Those numbers are impressive and, when considering industries as a whole, are pretty much unmatched anywhere else.
Chart courtesy of StockCharts.com
While those gains are very impressive and marijuana bulls ought to be thankful, the good news is that there very well may be more to come.
That means, even if you didn’t invest before the 2019 bump, you could still double your money before 2020 if certain events occur.
U.S. Marijuana Legalization
No, U.S. marijuana legalization is not going to happen in 2019.
But with all of the prominent Democratic Party presidential hopefuls coming out in support of marijuana reform, there’s a good chance that, if one of those contenders unseats President Donald Trump, we’ll see huge movement toward federal U.S. marijuana legalization within a few years.
While the election is still well over a year away, if polls start showing a strong marijuana reformer ahead of Trump, that could help spur pot stocks to rise.
But more importantly, marijuana reform is being proposed via Congress as well. While I’m not confident that these measures will be passed, if a few Republican senators flip their votes (coupled with the Democrats’ control of the House). we could see major legislation on the horizon that could change the landscape of the marijuana industry in the U.S.
That scenario is far more likely. Better yet, I doubt that Trump would use his veto power in this case, meaning that a simple majority would do. With the Senate so closely contested, Democrats could likely sway a few Republican senators to their side and push through major legislation, possibly paving the way for legalization in the near future.
If this happens, expect to see marijuana stocks soar.
Another important thing to remember is not to remain myopic. The world is a big place, and the North American market, while important, will only be a large slice of the whole pie when all is said and done.
Companies that are able to score major international partnerships or move into developing markets are best suited to see huge gains in the long run. As such, marijuana stocks belonging to internationally-focused companies deserve a second look.
And of course, legalization of marijuana in Germany—or, even better, across the whole European Union—will spark a flurry of activity and massive stock gains.
Marijuana stocks in 2019 started the year with gusto.
While a correction is likely in store for the marijuana industry following the massive run, huge gains are still likely in store over the long term for the top pot stocks in 2019.
Buy-and-hold investors are particularly suited to seeing big gains, with many marijuana stocks in 2019 likely seeing triple-digit gains—especially if either of the two scenarios discussed above come to pass.