But October 17 came and went and the “hope trade” turned into the “reality trade” as now companies had to execute in an environment that was still fraught with different regulations and expectations.
The hot pot stocks also saw big declines in the market correction at the end of the year.
Is this a buying opportunity in some of the names?
2019: The Year of Reality
There seem to be more opportunities than ever before in the cannabis industry. The American Farm Bill , which was signed by President Trump into law on Dec 20, 2018, could also have a big impact on the agriculture and consumer product industries.
The bill classified hemp as an agriculture commodity and removed it from the DEA’s list of controlled substances. This will free up farmers to grow hemp, at least in the states where it is currently legal to do so, which must have less than 0.3% of THC.
Hemp can be used in a variety of ways including in clothing, can be put in food and drink, as a supplement and in make-up and beauty products.
But it’s wrong to think that companies will just jump into the hemp market. The FDA has already warned that food and drink products with CBD must get FDA approval.
In 2019, while growth opportunities are there, the stakes are getting much higher. That’s why investors might want to go with some of the established names already in the industry.
3 Stocks Already in the Cannabis Industry
2019 should also be a big year with new companies jumping into the cannabis fray.
The ETFMG Alternative Harvest ETF (MJ) was trading at $28.45 per share on Wednesday afternoon, up $0.65 (+2.34%). Year-to-date, MJ has declined -12.53%, versus a -2.91% rise in the benchmark S&P 500 index during the same period.
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