Cannabis Stocks in Bear Market After 20% Decline

I recently published an update on cannabis stocks on the Cannabis Stock Trades website.

Here is a clip and a link to the full article. Enjoy!

For investors who love getting a good deal, this is an excellent time to take a fresh look at cannabis stocks.

After an incredible 12-month run higher from March of 2020 to February of 2021, cannabis stocks have entered a bear market – defined as a 20% or more decline from the 52-week high.

The Advisors Shares Pure U.S. Cannabis ETF (MSOS) is down 21% from the 52-week high in mid-February. Take a look at the 6-month chart below – you can see the all-time high from February and the recent decline.

6-Month Chart Advisors Shares Pure U.S. cannabis ETF (MSOS)Chart from

I see two key factors driving the recent decline.

Profit-Taking After Huge Gains in the Last 12 Months

Cannabis stocks had an incredible run higher from March of 2020 to February of 2021. For example, U.S. cannabis leader Curaleaf Holdings (CURLF) was up 600% in that time. After a big run higher, it’s normal for shorter-term traders and investors to lock in some profits. That’s what has been happening in the cannabis sector for the last few weeks and that has driven this recent decline.

Gridlock in Washington Creates Uncertainty Over Legalization

When Democrats won the Presidency, the House and the Senate optimism spiked that federal legalization was right around the corner. While federal legalization does still look inevitable, it may take longer than recently expected. That’s because of gridlock in Washington.

For example, the COVID-19 stimulus bill didn’t receive a single vote from Republicans. Even though legalization is gaining more support from Republicans, the lack of cooperation on the COVID-19 bill has made cannabis investors and analysts nervous that federal legalization won’t happen in 2021.

4 Reasons to be Optimistic about Cannabis Stocks

However, this bout of weakness looks temporary. Looking forward, I expect cannabis stocks to rebound and continue climbing higher because of four powerful catalysts on the horizon in 2021.

Click below and read the full report.

Cannabis Stocks in Bear Market After 20% Decline


Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.


Michael Vodicka

Michael Vodicka is the president and founder of the Vodicka Group Inc., a licensed investment advisor (Series 65) and a financial journalist.