Marijuana Stocks Rebound
This year has been an unpredictable one for every company on the market, no matter what industry they operate in. COVID-19 has created perhaps the most unpredictable economy since the Great Depression.
Marijuana stocks, due to their volatile nature as part of an emergent industry, became more destabilized than most, with many collapsing during the worst of the economic downturn.
Still, two marijuana stocks in particular, Curaleaf Holdings Inc (OTCMKTS:CURLF, CNSX:CURA) and Innovative Industrial Properties Inc (NYSE:IIPR), have not only bounced back, but have registered serious gains in 2020.
What does that tell us about pot stocks moving forward?
The answer to that question: not all marijuana stocks are created equal. While we all know this intrinsically, investors have not necessarily been making trades with this axiom in mind.
That lack of discretion when it comes to pot stocks has resulted in many speculative buys of marijuana penny stocks—stocks that were, before the crash, among the most volatile ones on the market.
Now, however, we have proof positive that there is, in fact, a substantive difference between the fly-by-night get-rich-quick marijuana penny stocks you’ve never heard of, and the ones that have real staying power.
One thing we’ve learned is that CURLF stock and IIPR stock are two of the most reliable and strongest marijuana stocks around right now.
Chart courtesy of StockCharts.com
Look at the above chart and you’ll notice something right off the bat: only two of those five pot stocks are in the black. The rest have had a much tougher time year-to-date.
Those two marijuana stocks showing gains in 2020 are Curaleaf stock and Innovative Industrial Properties stock. In fact, both companies have netted investors 40% gains in 2020, while many others have seen significant losses.
So what gives? Why did some pot stocks thrive while others fell?
There are two main factors that helped push CURLF stock and IIPR stock up while so many other stocks trended downward. They both have positive financials and they both operate in the most lucrative marijuana market on Earth: the United States.
Both stocks have had very strong showings in recent months and years, even with the marijuana market being especially volatile due to the massive spikes of hype that surrounded Canadian marijuana legalization. When that hype arrived, investors were like piranhas at a blood bank, swarming to the pot industry and inflating share prices.
That, of course, led to a correction that I rightfully predicted.
But I also predicted that, after the initial correction due to the luster wearing off of Canadian marijuana legalization, we’d see momentum once again behind marijuana stocks. The reason being that, while…