The marijuana market has been very good to us with extraordinary gains in many stocks. The Canadian Marijuana Index has been flat and commented the U.S. index was much better and that is easy to see on this chart of the U.S. index.
If there is one word I would use to describe the difference between the Canadian and U.S. indexes, it would be “California.” Recreational marijuana has become legal in a number of states but California is the largest and represents about the same size as the whole Canadian market. Canada is still a few months from the legal date but California is well into it since January 1, 2018.
A report from the cannabis industry research firm BDS Analytics estimates sales of cannabis in California to hit $3.7 billion by the end of 2018 alone, and predict that number will increase to $5.1 billion in 2019 as more