Cannabis stocks have never been higher. Most recently, the marijuana stock index outperformed the S&P 500.
Main St. Reports:
For all intents and purposes, the marijuana stock index has outperformed the S&P 500. Since January 1, 2014 when marijuana was legalized in Colorado, the S&P 500 is up 0.4% compared to 10.6% for the marijuana index and as of January 1, 2013, the S&P 500 is up 20% while the marijuana index is up 385%.
But with all the positives, experts believe that this is a fad. The article also goes on to state:
“We’ve seen many sectors in the past with great promise like nanotechnology, ethanol, solar and homeland defense,” Sykes told MainStreet. “They all lost their luster quicker than anyone expected.”
The one difference is, those sectors with great promise don’t reach and and effect a mass mainstream audience such as marijuana. Also, when was the last time nanotechnology or ethanol were shouted out in mainstream music. I think the popularity will only continue to grow.
What do you think about the promise of marijuana’s stock index? Will it continue to grow and be consistent, or will it lose it’s luster like Syke’s says? Let us know in the comments below.