The cannabis industry has been a hot topic in recent years as more states in the US legalize or decriminalize marijuana. However, it's been a rough year for cannabis company stocks, even with the increasing acceptance of the substance. After a big rally in January to begin the year followed by a moderate loss in February, the Global Cannabis Stock Index plunged 15.2% in March. April was a challenging month for the cannabis sector and we were closely monitoring how individual companies performed.
Despite the recent slump, experts remain optimistic about the long-term prospects of the industry. With New Jersey legalizing sales and New York licensing suppliers to begin, the marijuana sector is lighting up -- and not just on 4/20. However, the near-term outlook for cannabis stocks remains hazy. Stocks of legal marijuana companies are in a slump, and it's uncertain when they'll recover.
Over the past year, cannabis stocks suffered significantly, but a reintroduction of a banking reform bill may spark legitimacy in the industry. The reintroduction of a long-awaited bipartisan banking bill aimed at reforming the cannabis industry boosted marijuana stocks. The bill would allow financial institutions to work with cannabis companies without fear of federal prosecution.