Investors are beginning to re-orient themselves to the cannabis sector, with the common proposal being a strategy for taking positions in such companies, especially from the US.
The sector offers excellent long-term prospects but still has many disadvantages. The main concerns of investors are the over-valuations, not so much the stock prices. Mostly Canadian companies.
In the short term, growth is still volatile because the business itself, health care use, medicine and just relaxation are still volatile. The latest blow to the cannabis sector came from the Capitol and looked at the effect of marijuana on human health.
It is in the near term that many challenges arise, but in the medium to long term, things are very promising. This is also the reason why investors are considering buying cannabis stocks from US companies for long-term investment.
Currently, they are also offered at a great discount, with the sector adjustment of nearly 50% of the peaks recorded in April 2019.
The cannabis sector, however, remains under strong criticism and support from fanatics on both sides, with recent fatal cases following vaping, cannabis saturation for commercial use, faith in CannTrust, company performance and delay in FDA approvals, all still serious factors, which weigh on the sector.
The industry managed to record a victory after House of Representatives pushed the so-called. The Secure and Fair Enforcement Banking Act of 2019, which allows banks to service cannabis stores and related companies in 11 states.
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