Some people say it took a fairly low-profile analyst realizing that Aurora Cannabis Inc. (NYSE:ACB) is a “buy” to get the cannabis stocks moving in the right direction again.
I don’t buy it. ACB was due for a bounce purely on technical reasons. We talked about that last week.
So, even if an analyst talks about dispensaries across Canada reopening, my long-term view hasn’t budged. I’m still bullish.
It is only a matter of diversification. Wall Street essentially left ACB for dead a month ago. Now, suddenly, it’s a star.
But in the background, the entire group of cannabis stocks I track is up a healthy 11% this week and has given investors close to a 50% return so far this year. That’s huge.
All you need is long-term conviction and the nerve to hang on when volatility turns against you. The right perspective helps as well.
One of the cannabis stocks in my IPO Edge was hurting earlier this season and it’s down almost 5% this morning. But it’s still up 47% across the last two weeks.
That’s a big enough uptrend that even a 5% lurch to the downside is barely a speed bump. Want to know the ticker symbol? You’ll just have to subscribe.