Last year was a wake-up call for marijuana stock investors. For years, pot stocks had ascended to the heavens on promises of strong demand, rapid growth, and an expected quick push into the profit column. This vision looked especially feasible given Canada's legalization of recreational weed, support for legalization among the public throughout the United States, and the tens of billions of dollars in sales conducted annually on the black market.
But when the curtain closed on 2019, it turned out to be the worst year on record for cannabis stocks, with many losing at least half of their value over the final nine months of the year. In Canada, supply shortages and bottlenecks reared their head, while high tax rates in select U.S. states (ahem, California) made it impossible for legal players to compete with black-market pricing.
Following such a miserable year, the expectation has been that 2020 will be a rebound year for pot stocks. However, certain circumstances might prevent that from happening.