The marijuana industry boomed during the pandemic due to rising sales for both recreational and medical purposes. However, the industry has been under pressure lately due to oversupply and slowing demand due to high inflation.
With inflation remaining elevated and the federal funds rate likely to rise further, the economy could enter a recession, putting pressure on the cannabis industry. Amid this backdrop, it could be wise for investors to avoid fundamentally weak cannabis stocks Tilray Brands, Inc. (TLRY) and SNDL Inc. (SNDL). Let’s explore why they may be underperforming.
