Air transport and therapeutic Cannabis. All are still affordable at these rates.
In the United States the shares of the Transportation - Airline sector have grown on average in the last month by 57%.
Stocks like:
AMERICAN AIRLINES +32.48% BOEING CO +57.04% CARNIVAL CORP +44.81% EMPRESA BRASILIE DE AE-ADR +56.22% LINHAS AER INTL-ADR +62.10%
Have done these performances since the pre-election and pre-announcement of vaccines
2020 was a terrible year, but even if it will not be easy to start again, the vaccine has arrived.
Airlines and airports are organising themselves with rapid tests to get the most important destinations off the ground.
The past turnovers will not be fully recovered in the blink of an eye, but markets are always anticipating.
Understanding this opportunity in advance and knowing how to take advantage of it has been essential.
Returning to pre covid levels could take up to two years but the markets will not wait for this, they are already taking it for granted and these investments should have been made two months ago. However, there is still plenty of room for growth.
In the US another sector is also overperforming, with cannabis stocks up 96% in the last month.
AURORA CANNABIS INC +156.04% CANOPY GTOWTH CORPORATION +64.45% TILRAY INC +63.72% VILLAGE FARMS INTERNATIONAL +117.18%
In four states, together with the ballots to decide between Trump and Biden, voters had the opportunity to vote for a referendum to open the sale of marijuana to adults.
The positive result of this referendum increased the market for legal cannabis sales in the United States by 20%.
Aurora Cannabis and Canopy Growth shares have increased between 64% and 156% in the last month.
Investors are encouraged because the success of the referendum vote has expanded the potential market for the legal sale of cannabis and has shown that marijuana is becoming more and more accepted throughout the United States and beyond.
The rise began the day after the elections. Mexico is about to legalize marijuana. After 50 years, cannabis is coming off the UN drugs table. The therapeutic value of the plant is recognised. For the United Nations Organisation, cannabis is no longer a drug. After half a century, with only one discarded vote, the UN decided to remove cannabis from "Table IV", the most restrictive, which includes substances such as heroin and cocaine.
This opens up new legal markets for these American cannabis companies and supports strong and robust growth in the market.
At this point, cannabis in the US is now legal for adults in 16 states, while 36 states allow some form of access for medicinal use.
Forecasts now say that the legal marijuana market will reach 34 billion dollars by 2025, up from the previous forecast of 31 billion dollars.
Morningstar estimates that annual sales of cannabis in the United States will reach $70 billion for the adult segment and $15 billion for the medical segment.
Despite this month's big rally, shares in Aurora, and Tilray and other major cannabis companies have dropped more than 60 percent this year. So we still have plenty of room for growth. By 2018, initial enthusiasm about the prospects for rapid sales growth and company mergers had skyrocketed cannabis shares.
Analysts expect the market for cannabis products to continue to grow over the next decade.
Government regulations are currently holding back as marijuana is illegal at the federal level.
This represents an obstacle for companies when it comes to obtaining access to banking services, for example.
But now the road has been taken in those states that have already legalized, and there is still a long way to go for growth.
Understanding this opportunity in advance and knowing how to take advantage of it was essential.
Comment
⋅
The execution of investments must be carried out under the supervision of a trusted professional registered with the appropriate professional register, and will therefore be at your own risk, not assuming any personal responsibility in this regard. The operations described are proposed theoretically and for training purposes in the financial markets. The intent of this analysis is therefore exclusively informative and does not constitute an incentive for investment and/or financial advice.
Canadian cannabis is a minefield of hopeful future profits . They cant compete with the established black market . The public price per gram is plummeting below their cost of production and the black market price is still 40-70% lower than that . The rules regarding carrying / personal possession enable the black market to have access to massively more effective technically legal local distribution of higher quality product at lower prices . and apps like WeedMaps and others . let alone global scale distribution using monero / bitcoin and newer darkwebs that replaced Silk Road . you're effectively gambling on legalization here for Cannabis Fomo . which will lead to those markets discovering that the black market is more efficient , and the same legal loopholes created to transport and distribute legal marijuana can be exploited by the black/grey market to deliver product semi-legally although untaxed . and then the cannabis companies inevitably fib retrace -97% again when the fundamentals fall apart against their debt for production facilities that are now more expensive than the product they grow and they change their greenhouse space to like tomatoes or something .
Avatar_Trading
⋅
@BurnieMacTheCryptomaniac, I agree the black market may be cheaper but certainly isn't more efficient. Anyone that has ever had to pick up a sac knows dealers are not known for being reliable, go figure. The convenience of the store should not be underestimated in the future.
ARBoucher31
⋅
@Ramhusk, Not to mention delivery - MA has legalized delivery services now and there will be an Uber for weed before you know it
Bubble666
⋅
I wouldn't touch stocks at all time highs with a 10 foot pole, specially airline stock, lol
@Bubble666,
Because I am airplane nut, I will tell, offer, even flat statement; airlines are headed for monopoly consolidations at a breakneck speed over the next 2 yrs.
The private aviation industry is still in the mid-late 80's mindset of Judge Elihu Smails in the film Caddyshack. Complete lack of reality awareness to virus repercussions for the common man.
The commercial aviation industry is stalled. There are large, long term orders for aircraft not built, partially paid for, with clients wanting to back out of deal, or balk on still unpaid balances knowing there is dire low profit stability for the manufacturers.
Without being to Sc-Fi apocalyspe, commercial aviation is over.
There will be reliable flights to major destinations, only because there will be few flights in volume.
The few remaining small commuter flight 'airlines' will be stable and actually profitable. You will not see a commuter airline industry growth as in the 80's.
There will be private jets running as usual in traffic and frequency. JP Morgan, Chris Rock, Leon Pannetta.
Don't even think of a Piper Seneca, de Havilland Beaver, much less a Cessna 172 for a deal.
Those guys will die before they sell their bird below historical industry price.
I highly recommend watching for a Progressive Aerodyne SeaRey or Lockwood Air-Cam for sale in the next year.
Those who lived the credit life for the last 20 yrs are going to lose their time-shares and 3rd property mortgages.
Meaning they will sell their 'toy'.
You could be flying places for cheap, cheap... course @ 90kts, in ski-overalls. (its cold @ 4000agl)
TraderSalad
⋅
How long can the central bank keep propping up the market ? I suppose if the FED can keep creating $ out of nothing this can be sustained until inflationary forces become so overwhelming. Short the Banks !
Dipen56
⋅
@TraderSalad, It would bad idea too think the markets will ever go down again. They will have pull banks but we are never going down. Fed will always step in too fix them.