Are Cannabis Stocks Recession-Proof?
Cannabis stocks are in for their first big test -- a recession. In the early stages of the COVID-19 pandemic, things were looking good for the cannabis industry as people were stockpiling essentials, including pot.
But let's take a look at how the industry's done since then and whether investing in pot stocks can be a safe way to protect your portfolio during a recession.
To start, let's look at the Canadian cannabis market, the only legal one in North America. In March, adult-use cannabis sales in Canada totaled 181.1 million Canadian dollars. That was a sizable 19% jump from CA$151.9 million in February. In April, however, there was a slight decline, with sales falling to CA$180.1 million. It's not unheard of for pot sales to decline somewhat from month to month, and at first glance, the numbers do look pretty steady where they are.
Source Fool.com
