Cannabis Stocks Skyrocket Before November Election

The upcoming election appears to be having an interesting effect on the stock market. Cannabis stocks are on the rise, and it could be due to the fact that cannabis legalization has proven to be extremely profitable for all sorts of cannabis-related businesses. Considering there are nine states with cannabis measures on the November 8 ballot, there are plenty of companies that look to benefit from legalization.

The Marijuana Index is a company that tracks stocks for top cannabis and hemp companies. The North American Index shows that cannabis-related stocks for some of the top companies are consistently on the rise. The Vice President of The Marijuana Index, Dan Nicholls, commented on the trend to Forbes. “The average volume was eight times higher in October than January through September of this year,” Nicholls stated. “It is really pushing prices to crazy highs.” Although there are upwards of 200 cannabis stocks, the company only reports on the top businesses.

Nicholls thinks that a lot of the trading is speculative, causing stocks to be traded for up to four times their previous price. Year-to-date, stocks in the company’s United States Index are up by 57 percent in just the past month. They have risen an overall 137 percent in 2016. American Cannabis Co. Inc. is the highest ranking business, which was reported by Forbes as rising 188 percent in one month.

The skyrocketing cannabis stocks are going up across the board for American companies. “Since September, my subscribers have increased by a third and my page views for New Cannabis Ventures have experienced a 40 percent increase over the previous month,” Nicholls said.

Although the cannabis stocks continue to rise, it may not be a good thing in the end. After the election, they may start to fall, and it could ultimately be a risky investment to get involved in the cannabis stock market. “There’s a ton of volatility, and it’s very risky,” Nicholls said.