Despite the declining optimism of investors in the cannabis business, according to Noah Hamman, CEO of AdvisorShares, it can be a good year for the weed industry and investors in green gold. The CEO explains this to Yahoo Finance.
“Last year was a difficult year”, says Hamman, who speaks of 'the first trade'. “I think this year will be much better. We are particularly focused on the US cannabis market in 2020.” Hamman points to pressure from New York governor Cuomo to legalize cannabis. His proposal includes the creation of an Office of Cannabis Management to regulate its use. In addition, he wants a cannabis and research center by 2020. Cuomo wants to work with Connecticut, New Jersey and Pennsylvania to coordinate a system to legalize adult cannabis use.
If Cuomo's efforts are successful, it won't be long before New York City legalizes recreational weed. When this happens, the cannabis market in New York City could grow to $ 2024 billion by 1,6, BDS Analytics shows. The governor says legalization of marijuana could bring in about $ 300 million in tax revenue annually.
In 2019, the cannabis sector fell by 32%, according to the American company Stifel. Analysts at Stifel say that the rapid growth of the industry and the slower development thereafter pose a challenge for the sector. The optimism experienced by the cannabis sector last year after recreational legalization in Canada is declining. Companies downgraded prominent names such as Aurora. Stifel also pointed to a downward trend for major players such as Canopy Growth (CGC), Aurora, Tilray (TLRY) and Cronos (CRON). Investors hope to improve in 2020.
Hamman points to two newcomers who must keep an eye on investors. It's about True Leaf (TRLFF), a Florida company that continues to gain market share in the US. He is also very confident Green Thumb Industries (GTBIF).
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