Prediction: Canada’s Cannabis Market Will Recover in 2020
2019 was a rocky ride for marijuana investors, the first real losing year since the sector rose to prominence.
A number of different factors hit the industry hard. Retail struggles dominated the story during the first half of the year, with the leading pot suppliers unable to keep up to demand.
Then, the narrative changed. Suddenly, everyone focused on oversupply issues, with analysts predicting we’ll soon be awash in more legal marijuana than we know what to do with. Various pot producers missed on growth expectations. And investors woke up to some major issues, like realizing that despite all the fancy branding, marijuana is still a commodity product.
When it comes down to valuing an industry without any earnings, it all comes down to sentiment. But unless you’re a momentum trader, the key is to do the opposite of what every other investor is doing. Taking this contrarian approach is a key step to successful investing, especially in something like the marijuana sector.
Everyone is so bearish on pot stocks that just a few pieces of good news can really move the sector.
The bottom line
2020 could be a good year for Canada’s leading marijuana stocks. The market is simply too bearish today; just a few things need to go right for investors to have a nice year.
Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
Read the full article at TheMotleyFool