For years, the marijuana industry has been a source of steady gains for investors. In fact, the gains have been almost too good to be true in some instances. For example, early investors in Canopy Growth, Aurora Cannabis, and Cronos Group are likely sitting on quadruple-digit percentage gains, as of today.
But the wheels have decidedly fallen off the wagon since the beginning of April. The Horizons Marijuana Life Sciences ETF, the first tradable cannabis ETF, has shed more than 31% of its value since the end of the first quarter, with nearly every major marijuana stock down by a double-digit percentage over the past five months. Persistent supply issues in Canada, high tax rates in major recreationally legal U.S. markets, and the resilience of black-market producers has been hurting most of the industry.
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