The marijuana news today has us celebrating yet another triumph on the pot stock market as many shares see a strong increase in both early-morning trading and over the past week.
While the end of 2018 saw a dramatic fall in share prices only to have these companies rebound with strong gains as we reached the new year, 2019 has welcomed a full-blown marijuana market rally.
We have been seeing companies earn double-digit gains in the past few days, starting the year with a bang.
So what’s driving these great numbers?
The first factor is the rebound effect. That is to say that since marijuana stocks were on a pretty steep downturn post-legalization for several weeks, they fell to bargain prices and valuations, with investors jumping back in at the low point, reinvigorating the industry.
The other factor seems to be the recovery of the economy. While, at times, markets across the U.S. took massive hits (sparking fears of an entire market downturn), those markets have recovered. Therefore, worries of an impending recession have been put to rest—for now.
It is also looking like 2019 is shaping up to be one of the best years for marijuana stocks yet.
This is primarily due to the shifting attitudes in U.S. politics as well as among the business set.
Politically, a new presidential candidate is up for selection by the Democratic Party, and there is a better-than-zero chance that said candidate will support marijuana reform.
Should several candidates come out with pot reform as a feature of their platform, expect to see marijuana stocks rise as excitement grows surrounding the U.S. marijuana market.
Among the business class, we’re seeing more firms and analysts open their arms for marijuana companies, something that was long overdue. The