The scariest thing about this coronavirus crash is the unknown. You don't know when the outbreak will end. You don't know how long it will hurt the markets.
The CBOE Volatility Index (VIX) is above 60. Nowhere in 2019 was it above 30. Fear is off the charts.
But we're here to make the unknown a little less scary. Maybe we can even carve out some knowns – after all, there are known profit opportunities in highly volatile markets.
One of those, if your risk tolerance allows for it, is penny stocks. If you're even a little optimistic about a positive spike in the market over the next few weeks, this could double your investment or more.
You have all the reason to be optimistic about one specific industry: cannabis.
Cannabis stocks have been going through all the growing pains of a budding sector, so you might have written them off. The ETFMG Alternative Harvest ETF (NYSEArca: MJ) has fallen over 75% in the last year.
This has been a product of cannabis companies finding their place in the markets with a trade war in the backdrop. And now, we have a global pandemic.
But I wouldn't count out the cannabis industry. In fact, the state of Illinois isn't doing it, even in the face of a global pandemic. On March 21 (Saturday), it deemed the cannabis industry "essential" in its lockdown orders, meaning dispensaries would remain open.
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This is a good sign for cannabis, knowing that its foothold is strong enough to remain even in these critical times. It reinforces the growth targets from analysts: $13 billion to $66 billion by 2025. Make no mistake, coronavirus or not, this is still a realistic projection.
That's why this cannabis penny stock is one of the many considered "down, but not out." It's trading for mere pennies right now, meaning its price could see huge percentage shifts if the market has a good week.
This is the marijuana penny stock to buy while volatility reigns in the market…
The Best Cannabis Penny Stock Right Now
About the Author
Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.