RE:Is the marijuana sector finished its HUGE gains like before? Good question.
I think, unfortunately, this is the case for several factors and it isn't just the January decline. I think it is a mix of the following:
a) general negative sentiment from all those terrible news articles calling it a bubble. I am thinking those countless uncreative "why your marijuana investment could go up in smoke!" articles. I hate those.
b) the possibly justified fear of oversupply combined with lack of good data on how big the legitimate rec market will be in x time frame.
c) the stocks were low back then and the old November runs were perhaps justified because of that, but the stocks are quite high now. That isn't to say they are too high now, but there comes a point when the stock cannot grow before any real material gains are made. All that said, I don't know why the f**k WMD is so low.
I see the best case being they slowly come up to their old highs by legalization. After that, who knows.
GroverBear wrote: we all know there were a couple of huge run-ups in the past (November 2016, November 2017). Many people thought that the marijuana sector would be MUCH higher by this time since it's nearing legalization.
Are those run-ups over? Perhaps from this point on, even after legalization, not all marijuana stocks are like "gold" anymore? ie. the stocks may go up and down by a few pennies here and htere, but no longer these huge 100-300% gains, etc.
Any thoughts? It's a possibility. I welcome constructive criticism.
btw I am posting this on a couple of other boards to get some opinions