In these times of troubled economic times, there is one industry that doesn’t seem to stop growing: the cannabis industry. Cannabis industry stocks have grown exponentially over the last year, and don’t seem to be showing any signs of slowing down. A report from New Frontier Data and Viridian Capital Advisors, an investment company that guides businesses in the industry, announced that cannabis industry stocks grew by over 236% last year, according to the Washington Times.
New Frontier Data’s founder Giadha Aguirre De Carcer had this to say, “Cannabis stocks significantly outperformed major indexes in 2016, fueled by speculative investment based on anticipated expansion of new legal markets. In the run up to the election, stocks increased by 207.8 percent and continued to rise, even with an uncertain future under the new administration.”
There is still an air of uncertainty surrounding the cannabis industry, a result of White House Press Secretary Sean Spicer’s comments that there would be a federal crackdown on recreational cannabis. Attorney General Jeff Sessions who is no friend to cannabis, has also made some troubling comments regarding his department’s intentions as of late. Nevertheless, the cannabis industry continues to grow as states such as Nevada and California prepare their retail markets.
“While recent comments by the Trump administration did have an initial dampening effect on the market, we have seen continued growth relative whereby cannabis stocks are still outperforming other sectors,” De Carcer said. The growth of the cannabis industry shows no signs of slowing down. The cannabis industry is expected to surpass manufacturing in just a few years. One could posit that in order to avoid another economic collapse like the one we saw in 2008, the government will have no choice but to end cannabis prohibition once and for all.
Source: Washington Times
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