Stock Market News: Why Haven't Marijuana Stocks Boomed During Lockdowns?
Thursday morning brought more losses to Wall Street as investors continued to react negatively to a rising chorus of downbeat assessments of the global economy's near-term future. Several well-respected institutional investors have warned that the optimism from the market's rebound from the coronavirus bear market might not be warranted, especially in light of further weakness in employment. As of just after 11:30 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 89 points to 23,159. The S&P 500 (SNPINDEX: ^GSPC) fell 17 points to 2,803, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 85 points to 8,778.
Cannabis investors have largely been disappointed with the performance of marijuana stocks during the past several months. Just like consumers hoarded toilet paper and other necessities, some shareholders in cannabis companies had expected to see rising demand from customers stuck at home. However, even if that's been the case, it hasn't translated to gains for major cannabis producers. The ETFMG Alternative Harvest ETF (NYSEMKT: MJ), for example, has lost more than 30% of its value in just the past three months.