As the U.S. cannabis market continues to grow, the recent weakness in the sector stocks provides a great opportunity for long term gains while still fraught with high risk. The majority of the stocks in the U.S. cannabis sector are down far more than 50% from the highs reached just this year. The multi-state operators (MSOs) have major catalysts with languishing large deals in the late stages of obtaining approval to where these stocks will finally take the next step higher to general market visibility.
The U.S. cannabis sector is already massive and growing at a rapid pace. Arcview Market Research has the market reaching $12.8 billion this year and reaching $30.1 billion by 2024. The sector is forecasted to add ~$3 billion in additional revenues each year through 2024.
(Source: Curaleaf presentation)
The U.S. stocks don’t face the same problems with a lack of stores or product like in Canada, but the companies do lack access to the banking system and Federal approval of cannabis. The recent approval of the SAFE Banking Act in the U.S. House of Representatives is a significant step forward for sector, though a lot of work still needs to take place for