Wednesday, December 7, 2022

Should You Buy, Sell, Or Hold Cannabis Stocks Right Now?

National reforms will provide the trading momentum that lasts long enough for investors and shareholders to make significant ROIs.

This article originally appeared on Cannabis.net and has been reposted with permission.

So many questions are being asked about the cannabis industry and its stocks, as well as the fate of these stocks if the government fails to approve any form of decriminalization policy in the new year.

Regardless of what anyone thinks, the absence of federal reforms is putting a massive strain on the cannabis industry across the country. Mainly because of the lack of better policies, cannabis stocks are still not worth what they should be. This year, the stocks skyrocketed due to various states’ introducing their unique reforms. However, this does not excuse the need for a general overhaul that affects the country.

Existence Of Cannabis Investment Boom Remains Up For Debate, Say Industry Insiders
Photo by Darren415/Getty Images

Cannabis Reform And Trading

Throughout this year, no notable cannabis reform was passed at the federal level. There were only rumors of national measures and initiatives nearing approval, but none was signed into law.

Stockholders and traders explained that there were better trading options at a point this year. This improvement occurred around the time news surfaced that the government was taking specific steps to ensure the reforms were approved in a short time.

While the values of many cannabis stocks were rising due to this update, most companies could not maintain the upward positions. This resulted in a wave of unpredictable trading conditions that did more harm than good for the investors’ confidence level.

The Need For Cannabis Reform In 2022

Many investors are pondering on the same thing, which is what the future holds for cannabis reforms in 2022. The odds of federal reforms failing to pass again are pretty significant, and the industry needs something concrete to work with to put an end to the uncontrollable, volatile spikes in cannabis stocks and their trading options.

As of the time this is being written, none of the cannabis stocks have yielded good returns like they did a few days before and into 2021.

Many investors believe that the absence of federal reforms will prevent the better trading of marijuana stocks next year. They also feel that it will hurt the overall trade volume in the cannabis industry. This past year has been a rollercoaster for traders in the industry, and the majority of these traders and stockholders will prefer that the events of the last twelve months do not happen again.

RELATED: Here’s What The Cannabis Industry Is Most Optimistic About Heading Into 2022

This doesn’t bode well for the industry because it could deter new investors from venturing into the sector. Of course, many are trying to observe and see whether a new catalyst with the ability to help stocks recover will be announced before the year runs out.

The truth is that the only way to maintain a spark in the cannabis stock market is for federal reform to be approved immediately. As it stands, some investors are patiently banking on this idea.

Senator Chuck Schumer Remains Committed to Getting Federal Reform

Senator Chuck Schumer is one of the most outspoken cannabis advocates in the Senate this year. He has introduced at least two measures to the Senate to seal the decriminalization of cannabis in some forms. However, most of these bills fell through. He made it known that he is still working on a more comprehensive bill that could yield significant changes in the federal cannabis industry.

For 2022 to not be another letdown for cannabis investors and stockholders, lawmakers need to rally around and get the necessary support not only to ensure marijuana remains in the spotlight but to guarantee that legislative changes come to fruition.

Senate Parliamentarian May Have Foiled Schumer’s Marijuana Legalization Plan
Photo by Sarah Silbiger/Getty Images

Schumer is committed to various reform efforts, and he’s hell-bent on introducing legislation that not only focuses on banking reforms for the industry but also on the bigger picture. In a recent interview, he said that a large percentage of the countries and their lawmakers have discovered that all the myths about cannabis are just that—myths. The drug has more medical and economic benefits to offer Americans. It is not too late or too early to invest.

RELATED: Congressional Memo Praises Cannabis Momentum, Stresses Reform Priorities In 2022

The Pew Research Center disclosed in a survey report that 91% of U.S. adults support the federal legalization or decriminalization of cannabis for medical or recreational purposes. The probability of this occurring in the Biden Administration is still shaky. Many operators in the industry feel that it is unlikely that such a comprehensive bill like Schumer’s will be passed in the coming months.

Any form of reform would do the trick, though, as investors need assurance. While this is going on, it wouldn’t hurt to look into some of the best cannabis stocks you could invest in right now.

What Are Some Of The FANG Stocks Of Weed?

Curaleaf Holdings, Inc. (OTC:CURLF)

This company functions as a medical and wellness cannabis center in the United States. There are two arms of operations: cannabis operations and non-cannabis operations. The company recently opened four new dispensaries in Florida and still has plans to open more in the coming months. It also announced that it would be adding more innovative products to its stock.

Planet 13 Holdings Inc. (OTC:PLNHF)

This cannabis company dabbles in all the operations involved in cannabis production and processing. It cultivates, produces, and develops cannabis-derived products for the medical and recreational retail markets in Nevada. The company also distributes and markets these products while operating some of the most significant cannabis dispensaries in California. The company has a lot of value to offer as one of the prominent companies at the forefront of Nevada’s cannabis industry.

Green Thumb Industries

This company manufactures and sells many cannabis products for medical and recreational use in the United States. Last week, the company announced the opening of a new spot in Chelsea, Massachusetts. This brings the number of GreenThumb cannabis stores to 68. The company also disclosed that the store would be rebranded in the new year.

Bottom Line

Cannabis is here to stay, but only federal reforms can ensure the industry attains the level it ought to reach. National reforms will provide the trading momentum that lasts long enough for investors and shareholders to make significant ROIs. The cannabis sector lacks consistency. Any form of cannabis decriminalization will erase a tremendous amount of doubt and uncertainty in the industry.

This article originally appeared on Cannabis.net and has been reposted with permission.

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