Should You Avoid Pot Stocks Altogether During the Coronavirus Bear Market?
Last year was a challenging year for most cannabis companies, with shareholders becoming fed up with the continued losses that many industry giants were reporting. While some held out hope that 2020 would mark a turnaround for the sector, this COVID-19 bear market is the last thing the industry needed.
During the past month alone, many prominent pot stocks have reported major losses. Aurora Cannabis (NYSE: ACB) has officially fallen into the penny stock range, losing over half its market cap since late February. Canopy Growth (NYSE: CGC) saw a similar decline over the same period, with most other cannabis companies following suit. In comparison, the Dow Jones Industrial Average has lost around one-third of its value.
If COVID-19 continues to spread -- which it seems like it will -- should investors get out of the cannabis market altogether? Here are a few reasons why you might want to stay away from this sector until things stabilize a little.
Source Fool.com
