Since progress on Canada cannabis legalization has been slowing down, weed stocks are suffering.
This is a good sign for those wanting to invest in these stocks since they're on sale for cheaper than usual, but with a caveat. Forbes reports that there are other reasons for these stock prices dropping, including one being the "done deal" mindset on legalization.
Many hopped into the investment market expecting a quick return on investment with the expectation that legalization would hit this summer, but the delays have made investors anxious that the policy may not even be passed at all. Although the Senate was heated during the Cannabis Act's second reading in March, the legislation moved to committee after all. However, a final vote will occur on June 7. If passed, cannabis won't be legalized until the fall, though.
It's also important to mention that the entire Canadian stock market has been suffering lately. However, even if the stock market were better, it may be safe to assume cannabis wouldn't be doing so great either.
In North America, cannabis has the potential to fight the opioid crisis. State medical cannabis programs contribute to lower rates of opioid use and abuse, recent research revealed. According to Global News, the country has struggled with rising opiate use rates for the past decade.
