Most cannabis sector players' eye-watering valuations are normalizing on the back of COVID-19. However, investors who view the correction as a systemic shock-bargain hunters paradise will likely be burned.
Currently, there are two primary categories factors cannabis stock are tilted towards: fundamental-driven and narrative-driven. Two years ago, almost all cannabis stocks loaded on the narrative factor category. The narrative factor is sometimes referred to as a story stock. Despite the route, the bottom for stocks tilted towards the narrative factor will not hit until the end of the year.
The story that narrative stocks are