Cannabis Shares Underperform Going Into Year-End Amid U.S. Regulatory Logjam

Suzanne Cosgrove

Suzanne Cosgrove

Editor

Although adult-use sales of cannabis remain robust in U.S. states where it is legal, Nasdaq IR Intelligence analyst Saleem Daya sees continued stock underperformance across the cannabis space going into year-end, building on activity in the second and third quarters of 2021.

In an interview with John Lothian News, Daya notes the benchmark Solactive North American Marijuana Index is about 13% lower this quarter and is down close to 20% year-to-date, a move he attributes to disappointment that the U.S. federal reform that many were hoping for in early 2021 has not taken place and impatience with a regulatory process that remains mired in disagreement over its scope and depth.

Asset flows into major cannabis ETFs, which tend to be top holders across the sector, have fluctuated wildly, Daya says, and more volatility is likely in the year ahead.

 

John Lothian Newsletter

Today’s Newsletter

We visit more than 100 websites daily for financial news (Would YOU do that?)

Now Read This

The History Behind SGX; An Interview with Rama Pillai for The History of Financial Futures – a JLN Interview Series

The History Behind SGX; An Interview with Rama Pillai for The History of Financial Futures – a JLN Interview Series

In 1978, the Gold Exchange of Singapore (GES) was created by some Singaporean bullion dealers. Then in the early 1980s, the Monetary Authority of Singapore and financial community leaders sent teams around the world to examine different market structures. One was sent to Chiago to examine the Chicago Mercantile Exchange, Pillai said. The Singaporean team sent to Chicago liked the CME model and felt it would work well in Singapore. This led to the creation of the Singapore International Monetary Exchange or SIMEX.

Pin It on Pinterest

Share This Story