Hey there. I've answered a few questions here regarding cannabis stocks/cannabis ETFs.
There is no doubt more potential in the sector now that the Democrats have complete control. However, I personally think the cannabis sector has ran up a bit too much, too soon. I mean you can see a stock like Curaleaf has essentially doubled since October.
If you've ever heard the phrase buy the rumor, sell the news, I think there is the potential for this to happen. The stocks are running right now on pure speculation based on the legalization of cannabis in the United States.
However, in terms of whether or not these stocks will continue to run up, that's a difficult question to answer. I was part of the first cannabis wave. I bought Canopy Growth in the high single digits, and sold for over $64 less than a year later. But I also watched people nonsensically pay 200X earnings for stocks like Aurora, Canopy etc.
The euphoria this time is nowhere near the same, don't get me wrong, but we still see popular options like Canopy Growth trading at 30X sales.
Is there more money to be made in buying right now? In my opinion, yes.
But, are prices somewhat unjustified as well right now, and riding some strong momentum based off speculation? Again, yes.
So, whenever we run into situations like this, we have to understand the high amount of risk we're taking, especially since we're relying on the government here. We know how poorly the Canadian government rolled this all out, and it cost investors a TON of money.
Hope this helped!