As we wrap up what looks like will be the second consecutive year of decline for cannabis stocks, I find it interesting to observe that 5 of the 27 stocks on my Focus List at 420 Investor have produced double-digit gains despite tremendous headwinds. Regular readers should be familiar with 4 of them, as I have written about them over the past two years in this column.
Make no mistake, there have indeed been tremendous headwinds. The market has dropped 32.1% so far in 2019, following a 54.9% decline in 2018, with the current price of the Global Cannabis Stock Index testing levels not seen in more than 3 years:
While I am not much of a momentum chaser when it comes to investing, I have been around long enough to understand that when a stock can withstand a bear market, the company is probably doing something right, and that when the market turns, as I believe it is in the process of doing, the stocks can deliver big gains ahead. Further, I note that each of the 5 stocks that have prospered despite a weak overall market are down substantially from their 52-week highs.
– Read the entire article at Forbes.