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Corona and cannabis: coronavirus catalyst for cannabis shares

through Ties Inc.

2020-03-04-Corona and cannabis: coronavirus catalyst for cannabis stocks

You cannot set up a channel or it is about the corona virus that has already infected almost 90.000 people and killed about 3000 people. Wall Street fears a pandemic, resulting in massive volatility. But what about cannabis investment and stocks as the virus advances?

The stock markets collapsed because exports and trade from China and other countries were paralyzed. While nearly all industries are struggling, the coronavirus may be the catalyst for cannabis investors. The product is produced in many places, such as America and Canada, and also sold in the country of origin. Exports are by no means always involved, which means that the cannabis market is reasonably isolated from the economic shock caused by the virus.

Corona & outsourcing prostitution

The virus is not expected to be out of the world yet. People try to limit it spasmodically to prevent new contamination. China isn't the most popular country right now, but what the hell isn't coming out of China these days? This global economy has a huge impact on trade and markets around the world. Many companies rely purely on China for their products. Capitalism at its best. Even American companies ran into China's willing arms because production was cheaper there. This outsourcing prostitution is now causing major problems and it seems like a matter of time before companies collapse. Stocks are running out, which stops sales.

Local cannabis

Local markets will take maximum advantage of this. This brings us to cannabis shares like CGC (Canopy Growth Corporation). The cultivation, sale and use of cannabis is often represented in a country or state. Exactly, no exports and no disruption to the supply chain. In many American states and in Canada it is now a truth. Where the virus strongly affects other markets, in many cases it does not affect the cannabis market. It is still speculative at the moment, but it seems smart to respond to this as an investor.

The federal government in America is reluctant to legalize (medicinal) cannabis everywhere. The corona virus can cause this defensive attitude to change. An explanation for this reluctance is that medicinal cannabis can create competition compared to large pharmaceutical companies. However, many medicines come from China, the supply of which has now been disrupted. Theoretically, an earlier introduction of medicinal cannabis could have mitigated this situation.

Read more investorplace.com (Source, EN)

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