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2 Cannabis Investing Strategies for 2020 & Beyond

Cannabis Investing Strategy with laptop

Story Highlights:


Cannabis stocks started the year strong. By February, the ETFMG Alternative Harvest fund (NYSE: MJ), which holds most of the big names, was up 53% from its December lows.

But the sector’s been in a downtrend since the spring.

The chart below shows three major cannabis producers’ stocks: Cronos Group Inc. (NASDAQ:CRON), Aurora Cannabis Inc. (NYSE:ACB) and Aphria Inc. (NYSE:APHA)

As you can see, all three are below their prices at the start of the year.

And the hits for producers keep coming:

Clearly, we’re headed for a bottom in cannabis stocks.

The problem is that no one knows quite where it will be.

So today, I want to highlight two strategies for you.

Strategy No. 1: High Risk, High Reward

I know some of you are high-risk, high-reward traders. You may see the opportunity here.

Jim M. wrote to Anthony Planas in response to his article on the vaping crisis last week:

I really like your view on the market and your weekly cannabis reports. I currently own MEDIF, OGI, HEXO and a real gamble: CBIS. I am currently down on all 4 investments. Thanks to your and other Banyan Hill gurus’ research, I believe this is a temporary problem. I think the Senate will also approve the banking bill. With Canada coming online with drinks and edibles the future should be bright! Being the gambler that I am, I doubled down on MEDIF, HEXO and OGI. Thanks for all your input!

Jim, thanks for writing to us!

Keep us posted on those trades. Although Anthony doesn’t advise doubling down on positions only after they fall, he likes to buy stocks in chunks.

So, if you’ve been adding to your position a little at a time since you bought, you’re following Anthony’s style and averaging in.

Strategy No. 2: A Safer Cannabis Investment

If you’re not a gambler like Jim, you might be nervous about buying the cannabis sector right now.

Not to worry.

Alpha Investor Report Editor Charles Mizrahi found a way to play the rise in cannabis stocks with far less risk.

He believes in “indirect” cannabis plays — stocks that are set for enormous gains no matter which company becomes the leader in the marijuana market.

You see, Charles, a former Wall Street insider, knows about the opportunities most Main Street investors have little, if any, chance of hearing about.

And he thinks one little-known stock could deliver a 500% gain in the months ahead!

To learn about Charles’ risk-free offer, click here now.

Check out 3 YouTube Videos!

We have more great content to share this week!

 

Remember: We love hearing from you.

Are you, like Jim, buying pot stocks on the dip?

Did you take profits on your cannabis holdings?

Do you have a cannabis investing strategy that you think is going to pay off?

Or are you sitting this one out because of the volatility?

Leave us a comment below!

Good investing,

Kristen Barrett

Senior Managing Editor, Winning Investor Daily

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