The Canadian cannabis industry entered bear market territory in early 2019 and, as a whole, has yet to recover. This is evident in the 66% plunge of the ETFMG Alternative Harvest ETF (MJ) over the past three years.
However, the industry is growing quickly and now could be a good time for contrarian investors to scoop up shares of these beaten down stocks. In 2020, it was estimated that the legal global cannabis market was $12.81 billion and it grew to $16.25 billion in 2021. This growth is forecast to continue, with the market reaching $54.41 billion by 2026.
