Cannabis Stocks: Here's How to Maximize Your Gains Amid Sector's Strong Resurgence
Cannabis stocks have been on a rollercoaster ride, going from a big boom in late 2019 to a crash in the following years.
A pivotal moment for the sector came in October 2018 when Canada fully legalized cannabis, sparking a rally in stocks and ETFs.
This was followed by another event in 2019 when the US regulations changed, leading to the decriminalization of recreational use in nearly half of the states in the country.
This led to several companies going public, as the first investment funds and specialized ETFs were introduced.
The frenzy was palpable, with many stocks tripling, while funds experienced remarkable gains of 100-150%. Eventually, the sector experienced a downturn as stocks and ETFs went out of favor with investors.
As of Monday's close, the cannabis sector is in the midst of a strong rebound.
Behind this resurgence lies a significant rumor suggesting that the U.S. Drug Enforcement Agency (DEA) may reclassify cannabis from Schedule 1 to Schedule 3 substances.
Why is this crucial? Schedule 1 includes substances like heroin and LSD, whereas Schedule 3 encompasses substances approved by the FDA, and accessible by prescription.
Being in Schedule 1 restricts eligibility for credit or bank guarantees and prohibits interstate marketing. This development follows legalization efforts in the rest of the world.
In Europe, Malta took the lead by legalizing cannabis cultivation, possession, and consumption within certain limits.
Other European countries, including Croatia, Greece, Cyprus, Germany, Italy, Luxembourg, Norway, the Netherlands, and Finland, allow cannabis consumption for medicinal purposes.
Given this scenario, it's essential to explore how to invest in cannabis, treating it as just another sector in the
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