The Recent Pullback in Marijuana Stock Prices Is Totally Normal

The recent dip in marijuana stock prices has shaken investor confidence, but rest assured, this is a normal part of the business cycle.

It might have been concerning to see pot stock prices drop in early February with an equal jump in the NICI 50 volatility index. The NICI 50 is an index specific to the top 50 global cannabis stocks that is rebalanced daily.

marijuana stock prices

These price dips in February were the first we've seen of their kind since a December 2018 drop in the overall equity market. Whether you own pot stocks currently or are thinking of investing, you might wonder if the recent dip is a sign of things to come.

According to Money Morning Director of Cannabis Investing Research Greg Miller, the marijuana industry remains strong. The lower share prices are the product of the overall market's volatility, which is pushing pot stocks lower. While Miller doesn't know when this is going to turn around, he's confident pot stock prices will rally soon.

Here's why, plus how you can turn pot stocks into profits...

Marijuana Stock Prices Couldn't Escape the Overall Market's Volatility

Weed stock prices overall fell in November and December, but this wasn't because the marijuana sector was doing poorly. Just about every somewhat risky space was being punished in the market, and cannabis seemed to be next in line.

Emerging market stocks tumbled, tech stocks plummeted, and even some blue-chip stocks went down during this period. It would be silly to think that marijuana stocks would escape this crush unscathed, and they didn't.

SIT THIS ONE OUT and you could miss an American economic revolution that could send three little pot stocks soaring up to 1,000%. Click here to see why...

Canopy Growth Corp. (NYSE: CGC) saw its share price drop 34.6% between Oct. 23 and Dec. 25, which was about the low point for most pot stocks. But over the same period, Apple Inc. (NASDAQ: AAPL) was down 34.1% - close to the same amount.

You see, big swings in stock prices across industries are often because of investor sentiment changing and not because the fundamentals behind the companies have changed. Investors were concerned with the threat of a slowdown in China last fall, and that weighted down the entire market.

But now that stocks are recovering, cannabis stocks are poised to break out in a big way...

How Reality Favors the Future of Cannabis Stocks

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According to Miller, reality will eventually win out, and the right stocks will rebound. And they did.

This means that investors eventually realized that Canopy Growth is not going to be impacted by a recession in China, because it is a marijuana company based in Canada. So CGC and other cannabis stock prices not only came back, but some also went to new highs.

APPL share prices only rebounded slightly because there are still fears of a Chinese recession, and consumers in that country might hold off on buying iPhones for now. But Canopy prices came back.

So, why is the NICI 50 down again in early February?

Unfortunately, it's a repeat of the same scenario. There are once again global fears related to a stagnant economy in China paired with Brexit, stalled growth throughout Europe, central bank actions, and trade tensions. Because marijuana is considered a risky asset class, these are some of the first stocks that end up being sold in volatile periods.

That's perfectly normal.

But when marijuana stock prices take a tumble, it's natural to want to find someone or something to blame.

At the time of this writing, the NICI 50 is up 43.70% from its low on Christmas to 116.95.

While there are no guarantees that this upward trend will continue, what we do know is that some volatility in this sector is not anything to be concerned about. A dip in prices is certainly not a signal to sell, but instead could be the perfect opportunity to get into some of the top marijuana stocks that are poised for big gains this year.

These 3 Stocks Are the Key to 2019's Greatest Profits

The 2018 midterm election was a turning point for the cannabis industry.

We expect nothing short of historic profits by the end of the year.

But not all pot stocks will hand you life-changing wins. In fact, often the companies making headlines are least likely to see the biggest gains.

These three stocks, on the other hand, are flying under the radar... for now. Each of them could see exponential stock price acceleration at any moment, and if you get in before that happens, you could turn a token stake into a lifetime of wealth.

I don't know of any other sector providing anywhere near this level of growth now.

Click here to learn more.

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