Flat Cannabis Friday
Equity markets experienced its best weekly gain of the year. We are quickly erasing the recent correction and are now back to levels from two weeks ago. The S&P 500 closed with a gain of 0.73% to 1965. Small and micro cap stocks lagged but managed a positive gain on the day.
Daily Positive – Flat is better than negative.
Daily Negative – It is an interesting observation to note the decline in liquidity each Friday in the cannabis markets. Today is no different. The consequence is that slight movements can make larger impacts on pricing.
The officials in Colorado began to walk back their comments regarding a wholesale ban on edibles upon the public’s general negative reaction. This is a good sign that the general population and market will not stand for sweeping decisions based on fear rather than truth.
We always enjoy reading the rational responses by the organizations such as the Marijuana Policy Project or National Cannabis Industry Association. For example, when talking with The Huffington Post, Mason Tvert of MPP called out the crux of the issue, “Unfortunately, this debate is often driven by a small faction of people whose goal is to reinstate the failed policy of prohibition.”
If you are interested in investing in cannabis, it is your job to know about these potential legislative barriers, so be sure to stay updated on these issues and vote. Even if you do not believe in or support the political process, it is worth it for the sake your investment.