The following video expands on the comments that I posted earlier today in which I believe the potential for a “buy the rumor, sell the news” correction in the marijuana/cannabis stocks is certainly a possibility in the coming days to weeks. While I continue to hold relatively small positions scattered among numerous cannabis stocks as core long-term positions/investments & still believe that the growth potential in the cannabis sector in the coming years is tremendous, my concern is that most of & quite possibly much more than the most optimistic outcome of the 8 states that are voting to either legalize marijuana for recreational or medical purposes may have already been priced in, and then some, into the pot stocks, many of which are just fledgling companies with questionable fundamentals, unproven management teams and/or business models.
As with any sector or industry, there will be winners & losers over time with some of these companies most likely going on to experience tremendous growth in the coming years with some others falling to the wayside & eventually going to zero, as so many penny stocks often do. My plan is to let the dust settle after the elections & look to position for new long-side swing trade entries and/or add-ons to my existing core long-term positions strategically & objectively on pullbacks to support, ideally when the sector (i.e.- the bulk of the pot stocks on my watchlist) confirm.