Markets are in disaster mode.
Inflation is rising. Investors are panicking. There are fears of recession. The Federal Reserve may have to get far more aggressive with interest rates. Geopolitical tensions are worsening. Major indices are plummeting. But the last thing you want to do is panic and sell.
Instead, remain calm, and remember that markets are resilient.
- Days after September 11, the S&P 500 fell from highs of 1,186 to less than 985 — a loss of 17%. By December, the index reclaimed 1,173.
- On March 11, 2004, a commuter train bombing in Madrid left 191 people dead. Spain’s IBEX 35 fell from highs of 8,204 to less than 7,681 in a day. By April, it was at 8,478.
- In 2008, markets sank from more than 10,000 to a low of 6,500 before the Fed stepped in, sending markets to all-time highs.
- After the Boston Marathon bombing of 2013, the S&P 500 lost a bit more than 2% of its value. The market recovered that lost ground in two weeks.
- We’ve seen similar resiliency following Mumbai train bombings, Tokyo subway attacks, the London bombings of July 7, 2005, and the USS Cole bombing, among others.
In short, we’ve been through worse.
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Plus, we’re also still finding plenty of opportunities, especially in cannabis stocks.
For one, as we get closer to mid-term elections, cannabis stocks could see higher highs.
“Marijuana legalization measures are on the 2022 ballot in Arkansas, Maryland, Missouri, North Dakota, and South Dakota,” BallotPedia said, as quoted by Reason.com. “As of June 2022, 19 states and Washington, D.C., had legalized the possession and personal use of marijuana for recreational purposes, and 37 states and D.C. had legalized marijuana for medical purposes.”
Also helping the cannabis picture, more Americans are smoking cannabis than cigarettes for the first time ever.
According to data from a survey conducted in July, a record 16% of Americans say that they currently smoke cannabis, while just 11% reported smoking a cigarette in the past week, as noted by Marijuana Moment.
Then there’s Big Tobacco, which may be moving into Big Cannabis.
Over the past few days, British American Tobacco acquired a non-controlling minority stake in cannabis startup, Sanity Group. As noted by HighTimes.com, “The acquisition could also be seen as a reflection of an emerging trend: cannabis is the future, while tobacco — specifically cigarettes — is increasingly a relic of the past.”
We also have to consider the long-term potential of the cannabis story.
Allied Market Research, for example, believes the cannabis market could grow at a CAGR of about 20% over the next 10 years to reach $149 billion. Plus, not only are U.S. states legalizing marijuana use, the international community is getting aggressive with it, as well.
Germany may soon become the largest country to allow cannabis use.
In fact, Germany’s Chancellor Olaf Scholz is pushing for cannabis legalization. Better, “With uncertainty on the reform outlook for cannabis in the U.S., we suggest investors pay attention to Germany, as legalization there could result in significant upside for a few Nasdaq-listed cannabis stocks,” said Cantor Fitzgerald analyst Pablo Zuanic.
Even Akanda Corp. CEO Taj Virk says other European Union countries could follow suit, with legalization efforts. All of which could have a big impact on cannabis stocks.
Australia is pushing for legalization, as well.
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