There’s no doubt that important changes in the cannabis industry, such as legalization efforts, directly impact weed stocks. On the news of possible federal legalization, marijuana stocks usually trade higher. However, with so many delays and industry experts opining that federal legalization will probably not happen any time soon, cannabis stocks have taken a dive.
Since the beginning of the year, some of the biggest names in the industry have declined more than 30% compared to S&P 500 (NYSE:SPY), which plummeted by 13.76%, and SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) that dropped 9.84%.
