Marijuana Stocks Surge Going into 2021
It seems like pot stocks thrive the closer we get to the new year. We saw a late-stage surge in 2019, and the same thing is happening again.
Of course, I don’t have to tell you that 2019 and 2020 are very different years. But here’s what I can tell you about cannabis stocks going into 2021: the gains are just getting started.
To get where I’m coming from, you need to understand what catalyzed the rally in the first place. As seen in the following chart, the pot stock rally only got into full swing recently. For much of the year, marijuana stocks were flagging.
Chart courtesy of StockCharts.com
During the COVID-19 pandemic, the stock market has been painful for marijuana bulls—which is strange. After all, alcohol sales have historically increased, not decreased, during major economic crises. And it seemed that this trend has held true for marijuana.
Canada saw legal cannabis sales climb from $181.2 million in March (when the pandemic-related shutdowns began) to a record $256.3 million in September. (Source: “Retail Trade Sales by Province and Territory (x 1,000),” Statistics Canada, last accessed December 11, 2020.)
Colorado also saw a major spike in marijuana sales, topping $1.1 billion between March and August. (Source: “Colorado Marijuana Sales Top $1 Billion Since Pandemic Began,” Westword, October…
