Today was a wild day in the cannabis sector after Jeff Sessions announced that he will rescind the policy that protects legal cannabis on a state level. This caused the entire cannabis sector to dip almost immediately, but what happened to Canadian stocks after the dip was quite shocking.
Of course, many fairweather investors got scared and sold at the negative news, but the story doesn’t end there. Stocks like ACB, WEED, HVST, LEAF, MJN, FIRE (to name a few) dipped only to recover quickly. This gave smart investors a great opportunity to buy at low prices only to see gains almost immediately. Smart investors see red and view it as an opportunity to buy into a new company at a great time, or increase their current position.
We will keep a close eye on US companies who didn’t recover like the Canadian companies did today. There is a lot of momentum behind the cannabis sector right now. We expect many of the US companies to recover after the news. The Cole Memo Sessions plans to rescind may affect their profit margins, however, the states will be unlikely to interfere with the enormous tax dollars that have already come, or will be coming in the future from legalized cannabis.