Is the Hemp Hype Over?
The passage of the 2018 Farm Bill created a significant opportunity for the cannabis industry. It legalized hemp-derived cannabidiol (CBD) at the federal level in the U.S., giving companies a way to legitimately sell CBD products. It was an exciting opportunity -- but, unfortunately, hemp stocks have struggled badly over the past year.
Charlotte's Web (OTC: CWBHF) is down about 80% in 12 months, which is in line with how the broad Horizons Marijuana Life Sciences ETF (OTC: HMLSF) has performed during that time. Tilray (NASDAQ: TLRY), which last year acquired Manitoba Harvest -- the company that makes the Hemp Hearts brand of edible hemp-seed interiors -- has collapsed by more than 93% over the past year.
Given their struggles, cannabis investors may be wondering whether hemp is still a safer place to invest than companies that only sell marijuana and products high in tetrahydrocannabinol (THC). Let's have a closer look.
Source Fool.com
