From Hero to Zero: 3 Cannabis Stocks to Avoid Like the Plague

The US is seeing a surge in cannabis legalization, with 39 states allowing medical use and 21 states permitting recreational use. Despite this, the cannabis industry has been grappling with economic and industry challenges, such as oversupply and inflation, which have created a tough environment for the industry in 2022 and beyond. As such, it has created some cannabis stocks to avoid. Oversupply issues triggered a sharp fall in wholesale and retail cannabis prices in the US and Canada last year. This led to a saturated market, causing a steep drop in adult-use cannabis prices in Massachusetts and other states. In 2022, Canadian wholesale prices also fell by more than 40%. Moreover, in November 2022, Canada saw a 4.3% decrease in adult-use sales of recreational cannabis products. This was the second monthly decline in a row. Given these circumstances, it’s wise to avoid investing in fundamentally weak cannabis stocks. Here are three such stocks that I’m steering clear of at the moment.