The cannabis stocks may have been in the dumps for much of the past year or so but things could start to look up soon. That was the subject of the video released by RICH TV this past Friday.
Joe Biden’s Win is the Big Driver
As a Democratic candidate, Joe Biden is all set to be the next President of the United States and that is possibly one of the major reasons behind the optimism about the cannabis sector.
The Democrats have historically been far more tolerant towards the cannabis sector and that is clearly a significant reason behind the current buoyancy.
The host on RICH TV stated that in the long term, the cannabis sector is expected to stay and eventually grow. The rationale behind that statement lies in the fact that millions of Americans now use cannabis products one way or another. That is going to continue and eventually, the number of consumers is expected to rise in the years to come.
The rise in many of the cannabis stocks this week may be due to the election results, but it is necessary for potential investors to consider the long term view.
At this point in time, there are plenty of uncertainties about the cannabis sector despite the potential for growth. However, RICH TV state that in the long term, cannabis stocks have a long way to go from the levels that were reached last week. The host went on to state that the rally that was witnessed last week could well be the start of the turnaround for the cannabis sector.
On the other hand, RICH TV also pointed out that there was a combination of many factors that led to the rally last week. For instance, many short-sellers had been forced to close their short positions while on the other hand company insiders might have been selling their stock in the middle of a rising market.
So, it might take some time before the whole thing stabilizes. It is going to be interesting to see whether the sector produces further gains on Monday. However, it is almost certain that investors and market analysts are going to watch the cannabis sector very closely over the course of the coming weeks.
Featured image: DepositPhotos © Fotofabrika