The Financial Post reports in its Wednesday edition that cannabis stocks have plunged 50 per cent from their highs earlier this year as a lack of movement in U.S. legalization efforts has triggered an exodus of retail traders from the sector. A Bloomberg dispatch to the Post says that pot stocks are retreating after starting the year with a bang following Democrats seizing control of the Senate and raising hopes for federal legalization. The rally picked up steam in February as names like Tilray and Sundial Growers joined the growing meme-stock phenomenon, with both more than doubling in the course of three days that month. The biggest fund in the sector, ETFMG Alternative Harvest ETF, is down 50 per cent from Feb. 10, when it hit its highest level in nearly two years. The $1.25-billion (U.S.) fund saw investors withdraw a net $48.2-million (U.S.) between July 5 and Aug. 27, when it slid 18 per cent. Tilray closed Tuesday at $17.28, down from its 52-week high of $27.88.
© 2022 Canjex Publishing Ltd. All rights reserved.