By Ray Blanco
This post Interesting Times Ahead in the Pot Market appeared first on Daily Reckoning.
“May you live in interesting times.”
To some, that may sound like a blessing. Others say that phrase is actually the English translation of an ancient Chinese curse.
Whoever’s right, pot investors are certainly living in interesting times right now.
That’s because while on a strong bull run for much of the year, some of the more successful pot stocks have started to pull back and correct as we push into the fourth quarter.
Don’t Fear the Shift
First, I want to distill any panic. The big picture still looks great for marijuana stocks.
Looking at 40 of the top marijuana companies listed on the Nasdaq, we can see 62.5% are showing positive gains through the first two weeks of November.
If you need some reassurance that this industry is still thriving that should help. There are few industry indexes outside of tech that can boast anything close to that type of success rate.
Big picture, it’s clear that the summer uptrend we saw is still in play for the overall market. We’re just seeing a shift in who’s benefitting.
That shouldn’t come as a surprise — after all, pot revenues are absolutely exploding for legal pot companies in markets in the U.S.
U.S. Has the World’s Biggest Pot Markets
Nevada’s pot sales essentially doubled the numbers of other states, with more than $27 million in sales. Those numbers come in spite of the fact that Nevada faced huge supply shortages due to issues with distribution rules.
In terms of scale, it’s already quickly becoming one of the biggest markets in the entire world.
Not to be outdone, surprise news out of the north east corridor could land the U.S. another monster cannabis market. New Jersey elected pro-marijuana gubernatorial candidate Phil Murphy last week. Murphy made pot legalization a cornerstone of his campaign, and it became clear by the voter turnout that people in New Jersey want their weed.
Longtime legalization advocate and New Jersey United for Marijuana Reform committee member Evan Nison had this to say about the potential for New Jersey’s legalization efforts under Murphy:
I’ve said for a little while now that I think it’s possible that northern New Jersey could be the largest cannabis industry per capita in the world, at least while New York and Pennsylvania take their time to legalize…
If Murphy holds true to his word and fast tracks marijuana reform it could be huge for pot investors.
This Is What to Expect to Close 2017
As we continue to track the markets through quarter four, I’d be remiss not to mention there has been some pullback in the short term.
Simply put, some of the most successful marijuana stocks to date peaked midsummer in the middle of July and have been pointing lower ever since.
That doesn’t mean that the entire marijuana market has been dropping that whole time — only that some of the ones setting the pace of have started to take a dive.
That’s an important distinction.
One of the core tenets of …read more
Source:: Daily Reckoning feed
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