There is really no feeling of missing out, quite like when your favorite stock goes to the moon, as they say, but you didn’t have to jump in. Investing in any market is a risk and a gamble but there are certain truths that no one can deny. The average person looking to make a solid investment can often be scared off by an entry price that is too high. What nine to five mom or dad looks at a thousand dollar stock price for Amazon and thinks they can make a good profit on it? The truth is that there are none. For your average person looking to invest, the best time to do so is when the price drops. That is exactly what is happening with Canadian cannabis stocks.
Investors get excited about new companies entering the market, and in this case, an entire industry. A handful of years being traded on the stock exchange does not make you a veteran company by any means, especially with cannabis. The initial hype of numerous cannabis companies hitting the Canadian markets within such a short period of time created a rush of excitement. Rushes like that, surrounding new stocks or commodities, are driven by speculation and hype. When the hype wears off, investors take profits and the market corrects to the true underlying value of the company.
While many believe that these dips have longer term implications, the reality is Canadian cannabis stocks could not be any stronger. The ups and downs of the market are largely driven by speculation, which can often times push around less savvy investors. The one overwhelming factor that everyone who invests in cannabis stocks is that these are long-term investments in an industry that has not even come close to reaching a tipping point of mass adoption. The day to day and even month to month swings of the exchanges bear no relevance to the underlying value of the Canadian cannabis market.
Investors who believe in a stock will tell you to ‘buy the dips’ and ‘hold on for dear life.’ The best time to buy is when the market is down, and the market is down. For anyone looking to the future, and wanting an investment in something that that could provide a solid financial framework for decades to come, there are few investments that will stack up to marijuana. The Canadian government has already set the stage for recreational marijuana to be an incredible success. The naysayers will tell you otherwise and may promote falsehoods and propaganda to slow the expansion of cannabis acceptance. But as it stands, the growth of cannabis culture is unstoppable.
To get a grasp on the state of Canadian marijuana stocks, one only has to review the long history of the plant, and the path from which it came. Marijuana stocks represent a pinnacle of achievement for cannabis. The value of the biggest stocks in the market like MedReleaf, Aphria, and Canopy Growth represent strong belief in the industry, more so than a tangible dollar amount. If you believe in the future of cannabis and it’s ability to reshape the world, then a financial investment in such will certainly grow side by side with the culture.
So, while the Wall Street types are calling the dip in the cannabis market a bad thing, the question is for who? The industry is strong and will continue to grow at exponential rates, so don’t let the speculators and gloom and doom types steer you away from cannabis investments.
Davie is a long time cannabis professional who has worked not only as a cultivator but in all aspects of retail cannabis. From budtender, to wholesale and retail management, and from harvester to advanced hydroponic specialist, Davie has been around the block more than once. Now residing in beautiful British Columbia, Davie now works with acres of greenhouses, producing some of the best buds in the country.