rtmark
LearnBonds.com

Cannabis Stocks Are Falling Despite Market Reaching Record Highs

Believe it or not, the cannabis industry is suffering from scams and unchecked expectations as investors and early entrepreneurs aren’t making nearly as much money as they had hoped, reports MarketWatch.

Not A Strong Start For The Growing Industry

According to the publication, the ETFMG Alternative Harvest ETF, one of the easiest ways to invest in marijuana stocks, saw a 17% drop in the last three months alone. This is made even worse when you consider the fact that traditional stocks are seeing record highs and the overall market is performing just fine.

Reportedly, these numbers are dropping due to weaker earnings from Canadian weed growers. This is happening even nine months after the legality of recreational marijuana there. On top of this, a scandal involving Bruce Linton from Canopy Growth Corp didn’t help things either. Canopy Growth Corp is one of the top companies in the space, too.

Then, CannTrust Holdings was growing marijuana illegally, and there was also some regulatory issues regarding Curaleaf Holdings’ CBD products as well.

“All of those hits are hurting momentum,” claims Rob Di Pisa, who is a co-chair of the Cannabis Law Group at law firm Cole Schotz. “It’s just been one thing after another.”

cannabis
View our guide on the best stock investing apps to get a jump on the marijuana industry.

Since Linton was fired, the industry hasn’t really known how to recover. Linton, for example, was a public figure in a space that doesn’t really have many. Speaking to MarketWatch was Linton himself, who said that accepting $4 billion from the distributor of Corona beer, Constellation Brands Inc, is the big reason for his firing.

Constellation kept pushing Linton and his company to do better, despite their numbers falling hard. The CEO of the beer distributor, William Newlands, spoke about the matter on an earnings call:

“While we remain happy with our investment in the cannabis space and its long-term potential, we were not pleased with Canopy’s recent reported year-end results. However, we continue to aggressively support Canopy on a more focused long-term strategy to win markets and form factors that matter, while paving a clear path to profitability.”

This news is just the start of the downfall. From here, who knows exactly where marijuana stocks will go. If the industry is to be filled with as much deceit and fraud as the cryptocurrency industry, then it may have a ways to go.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission on real stocks

Rating

64 traders signed up today

Visit Now

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • 0% Commission
  • Trade Stocks Via CFDs
  • Authorized & regulated by the FCA

Min Deposit

$100

Charge per Trade

Zero Commission

Rating

Visit Now

76.4% of retail investor accounts lose money when trading CFDs with this provider.

Available Assets

  • Total Number of Stocks & Shares+2000
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Future
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • Dax Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire transfer
  • Credit Cards
  • Bank Account
  • Paypal
  • Skrill
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.

Cryptocurrency and games writer. Looking to the future by studying how these two industries can blend. LinkedIn: https://www.linkedin.com/in/maxwell-moeller-912044b4/