Can you believe it has been six years since the end of the financial crisis bear market? March 9, 2009, was a very different time for this world. Since then, the S&P 500 has powered higher by over 200% and unemployment has dropped considerably. This bull is now the fourth longest lasting on record. Naturally one can’t help but wonder, how much longer will this bull continue? Bulls were in control on this anniversary day with the S&P 500 gaining 0.37% to 2,079.
Cannabis stocks started the week off with a mixed tone. Volume continues to be low for most stocks in the space. A sector void of catalysts, plagued with low quality, and still elevated valuations, makes for a tough environment.
Daily Positive: It is easy to throw in the towel when times are tough. However, the ones with true resolve and long term vision are likely to benefit from this amazing sector.
Daily Negative: Many cannabis stocks continue to test lower lows, not a sign of renewed confidence or interest.
The bear market that has ensued since the cannabis bubble’s burst has left many investors with significant losses. Sentiment is depressed and many have left this area. However, the biggest holiday of cannabis is right around the corner. April 20 is a day of celebration for patients, advocates and consumers alike. We wouldn’t be surprised to see renewed interest leading up to this special day, but maybe this time the investors will be comforted by more solid companies in the space. Time will tell.
After all, bubbles can be unnerving, as one is always waiting for it to burst, so we would just be happy to see a healthy market, comprised of solid, revenue-producing companies develop and sustain. Hockey sticks are fun, but stability can be more reassuring for many investors who might want to give the sector another try.