Canadian Marijuana Stocks Gain Popularity Abroad – Marijuana Stocks
The global marijuana market is projected to reach $31.4 billion by 2021, according marijuana market research firm. Currently, the global market is valued around $7.7 billion and can see CAGR of 60 percent, as countries around the globe continue relax their marijuana laws. The rapid growth of this industry continues to entice investors around the globe, and last month, Canadian marijuana stocks became two of the top ten traded stocks in Sweden. Canopy Growth Corp (TWMJF) and Aurora Cannabis Inc (ACBFF) were both among January’s ten most-traded stocks on Nordnet.
“Out of nowhere, the interest for Canadian cannabis shares has completely exploded in Sweden,” said Joakim Bornold of an online broker bank. “That’s where the money is, if there’s a will to continue legalizing markets.”
With more countries either removing or reducing the severity of their marijuana laws, more people will have access to marijuana products. With more access comes more sales, which will naturally drive up the value of these hot marijuana stocks. In January, Canopy’s stock price soared to $35.88, it is currently trading at $21.30 while Aurora hit a high of $12.80 and is currently trading at $8.76.
The news of Swedish investors taking such a liking to Canadian marijuana stocks tell us a lot about the future sentiment of the marijuana industry, and things are looking good. What is specifically setting Canadian marijuana stocks apart from others is that these companies are on the verge of having their product legalized.
Canada is on course to become the second country in the world, behind Uruguay, to legalize recreational marijuana. Also, several Canadian marijuana producers, such as the two aforementioned, have gotten the green light to export dried medical marijuana to international markets that either cannot meet demands or do not have grow laws in place just yet.
While other countries will have to struggle with legalization, if it even happens, at that point Canadian marijuana stocks will be more two steps ahead. As Canadian companies such as Canopy and Aurora continue to maintain international operations, this will provide them with a dominant market position. No wonder why these marijuana stocks are getting gobbled up by investors in Sweden.