The ETFMG Alternative Harvest ETF (NYSEArca: MJ) has been steadily rising ahead of the 2018 Midterm Elections and with voters heading to the polls today, MJ could light up as part of a post-election rally.
In fact, some analysts are viewing today’s election as the final Jenga piece for marijuana legislation that could topple states into conformity, particularly those that haven’t yet adopted cannabis laws in some form or fashion.
“We believe his year’s midterms will reinforce the notion that cannabis in the U.S. has (passed) the tipping point on its way to eventual full legal status,” said Canaccord analyst Bobby Burleson in a research note.
A rally from MJ following the elections could come from a confluence of events that will benefit investors in the near-term and possibly beyond that.
Stock Market Gains Are 18-for-18
October 2018 has been one to forget for U.S. equities as sell-offs, particularly in the technology sector, fueled declines in the Nasdaq Composite, which fell by 9.2%, making it its second largest decline since it fell 10.8% back in November 2008. Things weren’t much better for the S&P 500, which followed the Nasdaq into correction territory and fell by 7% in October–its worst month since September 2011.
The Dow Jones Industrial Average fell 1,300 points or 5%, which hasn’t happened since January 2016. Investors were rocked by copious amounts of volatility after a decade-long bull run that has seen the growth fueled by FANG (Facebook, Amazon Netflix, Google) stocks dwindle as the technology sector fell into correction territory.
MJ wasn’t completely immune to the volatility in October, but it was able to stave off deep declines like those experienced in the technology sector. However, after all that volatility, there appears to be the proverbial light at the end of the tunnel.
“18 out of