Weren’t pot stocks supposed to take off? Dude, just chill and float.
You’d think with more states legalizing marijuana we’d start to see the pot stocks make their way higher. But when you dive in to the charts and look at what is going on in the industry, it is a different story.
Like many other emerging sectors, the rise in interest rates and the tightening of venture capital has slowed growth for pot stocks. While there are some lager players starting to emerge in this space, it is sill a bit of a wild west environment. Layer on top of all of this that government regulation is now knotted up in the political landscape and it really makes it a tough space to navigate.
But there is a get it and forget it approach to consider if you are looking to be there early when it all takes off.
There are a few cannabis ETFs out there to consider. YOLO, MJ. MJUS, are a few but MSOS has the highest volume and would offer the greatest liquidity as a result.
MSOS. like the entire sector has been on a steady decline for the last two years, but has settled in and leveled off below $10. If you are looking at a long term portion of your capital, grabbing some of this and hiding it in a shoe box in the closet might be a strategy. Although, you really don’t have to do that anymore, but you get what I mean.
We have said it many times in previous articles. Grabbing an ETF diversifies the risk a bit as you aren’t trying to pick just one stock and are able to ride the broader wave.
Keep learning and trade wisely,
Market Wealth Daily