Growth investing can be extremely challenging, especially when the stocks in which you are investing have no earnings. Speculative cannabis investors have been taught a harsh lesson over the course of the past year, with many of these stocks being absolutely crushed in the latter half of 2019. How bad has it been? Well, let’s look at some of the performances of some of the better-known stocks over the past year.
Cannabis stocks have been crushed
The better-known stocks in the Canadian cannabis space are Aphria, Aurora Cannabis, and Canopy Growth. It is interesting to note that there is not one single stock among the bunch that has survived the carnage. Not a single stock has the investor clout and financial strength.
Every single stock has basically been cut in half or more over the past year. Aphria has fallen almost 48% from a year ago. Aurora has fallen even more, down 55% year over year. Even Canopy Growth, which was arguably the biggest and best of the bunch, is down 45% at the time of this writing.
Even owning a basket of stocks wouldn’t have helped much over this time frame. Horizons Marijuana Life Sciences ETF has been similarly crushed, down almost 48% over the same period. You have to realize how big an issue this is, since an ETF is usually a good way to mitigate a loss by diversifying….CLICK for complete article