For years the Cannabis industry has been impressively growing. Before CoVid19, it was the fastest growing industry in the market. Since this pandemic has hit, the stock market has been steadily shifting. In February, the stock market had fallen twenty percent. When any policy was changed, with things like travel bans, school closings, and borders closings, the stock market had another knee-jerk reaction.
Reasons CoVid-19 Affected The Stock Market So Dramatically
The United States has experienced pandemics in the past. Usually, the stock market spikes and then quickly recovers. Several things may be causing differences this time. We are much more connected with the world than we have been in the past because of technology. Many of the products made in our country depend on parts that come from other countries. When the supply chain gets a kink, our economy feels it more than it has in the past.
CoVid 19 is new. We didn’t understand how it was transmitted or if it would mutate. There was no ready medication to use to fight the disease. All of these things caused concerns. The media has reported on this pandemic very differently than they have in the past. Fear and worry may have contributed to the downward activity of the stock market. This CoronaVirus is the first time that a pandemic has hit the economy with such a mighty blow. The good news is that, since the economy was doing so well when the virus came, there is hope that recovery will likely be quick and easy.
Cannabis Stock Staying Steady
The cannabis industry was affected in the same way toilet paper was. People started buying it in large quantities, worrying that in the future, they would have a difficult time finding it available. Sales increased. After a while, people realized that marijuana is considered medically essential. The shopping shifted to online services, and their sales are good. The cannabis industry has one of the most secure footings in the market.
Promising Cannabis Stocks
Though many states have legalized marijuana, the Federal Government has not. Many people believe that not long after the 2020 election, no matter who wins, they will. Legalizing marijuana will have a positive and needed impact on the economy. Legalization would take the cloud away that is always there, threatening to rain on their parade. Legalization will have to eventually happen because there will be much revenue lost in taxes without the federal government making their move. Now, while the companies are still start-ups, stocks are low. That could change very quickly. There are many great companies to get behind, some of them showing more promise than others. This could be an opportunity to invest in some of the best marijuana stock in 2020 such as Medicine Man Technologies inc. According to Money Morning, “Medicine Man CEO Justin Dye says both Mesa Organics and Purplebee’s are well managed and very profitable. Dye also said the company intends to make even more acquisitions in the months ahead.”
The companies that invested in land to build cultivation plants for marijuana may not do well until after the virus has run its course. The businesses that depend on personal contact may have to go on a back burner as well, but this industry will do very well. It will continue to grow in popularity, and medical use over time and new products will be introduced.
