Sentiment for the cannabis industry is at an all-time low. This has been driven by a long downtrend caused by a myriad of issues facing the industry; from oversupply in Canada to slow legislative movement in the US, the cannabis industry simply has had no news to cause the hype and hysteria which ensued back in 2017-2018. However, just as cannabis stocks (and their respective valuations) went well above and beyond anything that resembled reality, pessimism has now too gotten out of hand.
No sooner did Jeff Sessions attempt to derail the cannabis industry than he inadvertently lit a fire under it. Session's action drew broad criticism from Congressmen and women across the board. In fact, there was virtually zero support for Session's action to rescind the Cole Memo.
US and Canadian listed cannabis stocks have been on fire since early 4th quarter of 2017. One catalyst after another has led to stock price appreciation not since 2014 when Colorado implemented the world's first recreational cannabis laws.
Last week, Attorney General Jeff Sessions hinted at a shift in marijuana enforcement, just weeks after signalling he would continue Obama era policy regarding cannabis law. This series of flip flopping left cannabis industry activists and investors alike dazed and confused. Considering the market is a psychological beast, speculation seemed to favor a substantial move lower in cannabis stocks for both US and Canadian stocks in the days following Session's comments .
Buy the rumor, sell the news. It is probably the most common stock market adage, yet so many fail to see it coming. It's happened in the Cannabis industry twice over the last year.. An exponential rise necessitates a correction, nothing can move at such a trajectory indefinitely.
However, [Sessions] changed his tune during today's congressional hearing where he conceded, "Obama-era guidance that allows states to legalize marijuana without federal interference remains in effect". Further he stated, "I believe we are bound by" a federal budget rider that bars the federal government from spending money to interfere with state medical cannabis laws." These statements were given under oath, so it isn't likely he will go back on his word any time soon.