Marijuana stocks are breaking out, right on schedule. Stocks in the sector got ahead of the fundamentals earlier this year. One reason for that is that the impact of regulations are difficult to determine in advance. Legalization, for example, seems bullish. And it generally is — but if taxes are too high, then the illegal market will thrive alongside the legal market. This is what happened in many parts of the country, and it is being addressed. So as we head into 2020, I have some thoughts on how the industry will take shape. In short, I’m predicting that the… Read More
Marijuana stocks are breaking out, right on schedule. Stocks in the sector got ahead of the fundamentals earlier this year. One reason for that is that the impact of regulations are difficult to determine in advance. Legalization, for example, seems bullish. And it generally is — but if taxes are too high, then the illegal market will thrive alongside the legal market. This is what happened in many parts of the country, and it is being addressed. So as we head into 2020, I have some thoughts on how the industry will take shape. In short, I’m predicting that the legal cannabis industry is likely to flourish as concerns about safety increase. You read that right. NPR recently explained the safety problem the industry is poised to address: As of Dec. 17, there were 2,506 hospitalized cases of e-cigarette, or vaping, product use associated lung injury, which is now referred to as EVALI by the CDC. The incidents were reported in all 50 states, as well as the District of Columbia, Puerto Rico and U.S. Virgin Islands, since the summer. Fifty-four deaths have been confirmed in 27 states and the District of Columbia. The CDC’s data… Read More