For the last few years, the cannabis sector has experienced extended periods of strength followed by large pullbacks that lasted on average three to six months. During this period, buying cannabis stocks on a pullback has been a highly effective strategy.
Today, investors want to know if this a good time to buy cannabis stocks…
Mergers and acquisitions (M&A) continue to heat up in the cannabis sector. This is a trend that investors need to know about because it’s creating an opportunity to pick up a quick gain.
The latest evidence?
Harvest Health and Recreation (CSE: HARV, OTC: HRVSF), one of the largest cannabis companies in the U.S., jumped 35% in five days after announcing it was being bought by Trulieve Cannabis (CSE: TRUL, OTC: TCNNF), also a cannabis giant in the U.S.
When the Democrats swept the U.S. elections in November, cannabis investors were excited over the potential for major cannabis reform. Today, 90 days into the Biden administration, we have a much better idea of what to expect.
It’s one of Wall Street’s best-kept secrets – a studied market anomaly that helps investors ride a move after a company reports an earnings surprise. And right now looks like a great time to apply this strategy to the cannabis sector after two of the most exciting cannabis stocks just crushed fourth-quarter expectations.
Joe Biden has been sworn in as the 46th President of the United States. There are few groups more excited than cannabis investors. The Joe Biden presidency is likely to fuel even better growth in the U.S. cannabis industry.
While I expect many cannabis stocks to benefit, I believe that one is in the best position to benefit from a cannabis-friendly administration.