Summary
In January 2017, the cannabis or marijuana stocks and sector generated a return of about 51%.
So far, in January 2018, the cannabis or marijuana stocks generated a return of about 32%, and the month is not over.
U.S. Attorney General Jeff Sessions made a public statement on February 23, 2017, that coincided with a sector rally “stall,” but not this time.
The January 4, 2018 public statements by U.S. Attorney General Jeff Sessions stalled the rally, a bit.
Upcoming Canadian legalization and U.S. Election ballot measures should continue to put upward pressure on cannabis and marijuana stocks.
What Happened in 2017
I documented the 51% January 2017 returns in this Seeking Alpha article. I credited U.S. Attorney General Jeff Sessions with killing the rally, on February 23, 2017, in this Seeking Alpha article.
I expected the see a rally begin, again, after tax loss selling or harvesting in late December 2017, and had some company with respect to this prediction, but I did not expect the rally to begin in October 2017, as we approached California legalization formalization. In hindsight, this makes sense, since the population (or market) for California is larger than the population (or market) for Canada, at about 11% and more than 12%, respectively.
So, we are getting a January effect, at 32%, so far, we just did not get the negative NET returns for late December and from tax loss selling or harvesting, as the sales were smaller than the buys. This data is included in APPENDIX A.
Will Happen in 2018
We learned from the January 4, 2018 statement by U.S. Attorney General Jeff Sessions that the market is a bit concerned about his actions, but the Canadian legalization and November U.S. election ballot measures for decriminalization are so overwhelmingly positive for the expanding market or sector, that anything short of immediate and active enforcement of Federal law cannot stop the cannabis or marijuana rally.
credit:seekingalpha.com
